Gary Blackwell-known Tesla supporter and managing partner of Future Fund, publicly disagrees with the idea of Tesla Inc. TSLA repurchase Bitcoin Bitcoin/USD. Black voiced his opposition on social media platform X on Monday.
What happened: Black’s statement responded to user X, who proposed that Tesla should consider buying back the Bitcoin it had previously sold. Tayar’s suggestion was posted in a Black thread discussing common mistakes investors make when comparing a stock’s P/E to short-term EPS growth.
“Please no. You can buy #BTC as an investor. Why would we want $TSLA to do that?” Black responded to Tayar’s proposal, indicating his position that individual investors, not corporations, should invest in Bitcoin.
In a follow-up discussion, Black said buying and selling Bitcoin is not a sound capital allocation for Tesla, citing it beyond the company’s core competencies, despite Tayar suggesting it could boost earnings.
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Because matter: This disagreement comes on the heels of Tesla’s history with Bitcoin. Tesla announced a $1.5 billion Bitcoin purchase in February 2021 and subsequently sold part of its holdings, capitalizing on the digital currency’s gains.
However, Black’s skepticism towards Bitcoin is not new. In January 2024, he warned that Bitcoin could drop by 70%. He attributed this prediction to the lack of expected institutional interest and warnings from renowned investors about Bitcoin’s lack of intrinsic value.
Despite his stance on Bitcoin, Black remains optimistic about Tesla’s future, particularly regarding the Cybertruck. He believes the Cybertruck could be a key catalyst for Tesla’s earnings in 2025, provided the company can scale production.
Tesla remains the fourth largest holder of Bitcoin among public companies. At the time of writing, the Elon Musk-led company held a total of 10,500 units, worth $740.28 million. Among these companies, by far the largest holder is MicroStrategy Inc. MSTRwhich sits on a pile of Bitcoin worth over $12 billion.
Price Action: At the time of writing, Bitcoin was trading 5.15% higher at $70,480.40, according to data from Benzinga Pro.
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