Is Elon Musk signaling move into gold? What Tesla’s filings reveal - Alex Mashinsky
Tesla has stated in its latest annual report that the company has updated its investment policy to now include bitcoin, gold, and “other assets” as possible investments.
In the last 10-k filing with the SEC, Tesla stated that “In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity…we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other assets as specified in the future.”
While this move may move the price of Bitcoin, it would have limited direct effect on gold prices, said Alex Mashinsky, CEO of Celsius Network.
“What they’re not telling you is they don’t trust the U.S. dollar. They’re saying by voting for Bitcoin and putting gold as a reference, they’re basically saying we do not want our treasury to be held in U.S. dollars because we expect high inflation, we expect debasement, we expect everything besides good news about the U.S. dollar,” Mashinsky said.
Tesla’s decision to invest in Bitcoin also signals that established industrial and technology companies have now accepted the cryptocurrency as a legitimate form of currency with real utility.
“It’s much easier for Elon Musk to buy it on their own account, but convincing the board, convincing the investment community that this is a good thing is definitely a much higher bar,” Mashinsky said. “In 2017, the heroes, the ambassadors for Bitcoin and Ethereum were people who were not really at the top echelon of the business world. Today, some of the best, most famous people in the world are the champions of Bitcoin, Ethereum, and so on.”