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Tesla Faces More Scrutiny Over its $1.5B Bitcoin Purchase

Tesla Faces More Scrutiny Over its $1.5B Bitcoin Purchase
  • Tesla faces scrutiny over its $1.5 billion Bitcoin purchase.
  • The firm recently revealed that it bought bitcoin in January and plans to accept BTC as a form of payment.
  • However, a conflict of interest surrounds the Director who approves BTC purchase.
  • More so, Elon Musk’s BTC investment could be good, but it’s definitely risky for the company that made him the world’s richest man.

Tesla is under scrutiny over its $1.5 billion Bitcoin purchase. As the experts questioned whether there is a conflict of interest surrounding a director who endorsed the firm’s huge Bitcoin (BTC) investment.

Conflict of Interest Surrounds Director Who Approved BTC Purchase

Tesla revealed recently that it made a BTC investment in January.  Thus, it plans to use the crypto as a form of payment for its products in the near future.

Tesla’s BTC buy was affirmed by the firm’s independent director and a member of the audit committee, Antonio Gracias. In addition, Gracia is a cryptocurrency investor and long-time friend of Elon Musk. Gracia also invested in two crypto firms: Bitgo, a crypto custody service provider, and Erisx, a crypto derivatives trading platform.

Moreover, Elon Musk’s Tesla BTC purchase could be a good call, but it’s definitely risky for the firm that made him the world’s richest man.

Wall Street bank Capital Planning Executive said,

Tesla buying $1.5 billion in BTC is interesting. Am assuming they haven’t hedged it, so they will either be cash rich in the future or have a hole in the balance sheet. Elon Musk stays wild.

Recently, lawyers warn Elon Musk about possibly facing a US SEC probe for pumping BTC price through his tweets. Meanwhile, BTC price has increased significantly. According to CoinGecko, BTC surged from around $30K to $40K in January, to $52,099, at the time of writing.

After Tesla’s investment in BTC, many firms began investing part of their reserve cash in BTC. In light of new investors and financial firms jumping onto the asset, it’s possible that a decent framework will be made to guarantee BTC’s long-term viability.

Crypto trading has enticed Ananthi Reeta to write for CoinQuora. She consistently contributes news and feature articles. She has covered several different blockchain and crypto niches, especially altcoins.