By Sylvain Saurel
Let me be clear, Elon Musk did not spend $1 billion to buy Bitcoin.
On the other hand, Tesla, the company of which Elon Musk is CEO, has just opted for Bitcoin. Tesla used 10% of its cash reserves to buy Bitcoin. This represents a purchase of 1.5 billion dollars from BTC.
So Tesla is betting on Bitcoin just like MicroStrategy or Square for example. It is a wise choice that will be recognized as very smart in the months and years to come.
What is intriguing, however, is the timing of this purchase and in particular, the Elon Musk tweets sent in the weeks prior to this purchase by Tesla.
Elon Musk first criticized Bitcoin probably causing its price to drop. He then declared his flame a few weeks later. The SEC may see this as a (successful) attempt at price manipulation. The SEC may well demand accounts from Elon Musk and Tesla in the coming weeks.