Tesla stock slightly higher after bitcoin payment update, Riot, Marathon, MicroStrategy tumbles
- Tesla shares were trading higher by just under 2% after Thursday’s market open.
- The electric automaker said it will no longer accept bitcoin as payment.
- Riot, MicroStrategy, and Marathon shares tumbled on market open on Thursday.
Shares of electric automaker Tesla Inc (NASDAQ: TSLA) erased earlier losses and were trading higher by just under 2.0% after Thursday’s market open. The reversal in direction follows a surprise announcement from the electric automaker in which it said it will no longer accept bitcoin as payment.
Pro: was this a marketing ploy at Tesla?
Tesla CEO Elon Musk took to Twitter to express concern with “rapidly increasing use of fossil fuels for Bitcoin mining.” While at the surface this may appear to be a negative catalyst for Tesla stock, this wasn’t the case as shares inched higher.
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Pomp Investments Founder Anthony Pompliano said on CNBC’s “Squawk Box” segment Thursday morning investors need to “watch what they are doing.” Specifically, Musk is still holding billions of dollars of Bitcoin between Tesla, his company SpaceX and personally.
As such, Tesla’s announcement could be part of a “marketing ploy” to draw attention to the issue of sustainability in cryptocurrency. It is possible Musk and Tesla have a potential solution in mind to “save the day.” This is one theory that might explain why Tesla’s stock moved to the upside Thursday morning.
“Elon Musk did not sell any bitcoin because of this and I don’t think he is going to change his mind about the future or prospects of bitcoin. It’s simply a way for them to change that narrative so they can go ahead and launch a product in the future.”
Grayscale ETN, Riot, Marathon Digital, MicroStrategy trading in the red
As one would expect following Musk’s surprise announcement, Bitcoin price was deep in the red Thursday morning. Supporters of bitcoin cheered Tesla’s payment option as it provided a real life use case in how companies can transact with customers in cryptocurrency.
The cryptocurrency briefly dipped below the $46,000 level before staging a rebound. Trading nearly in unison with the price of Bitcoin, the Grayscale Bitcoin Trust (OTC: GBTC) ETN and bitcoin price were each lower by around 9.0%
Last, MicroStrategy Incorporated (NASDAQ: MSTR), a business intelligence company that holds Bitcoin, saw its shares trade lower by 5.0%.