What's going on everyone? My name is nicholas merton here at dated ash and today is february 9th of 2021. Well, folks, i hope you are having a fantastic day wherever you are, and in today's, video we have one of the most historic events in cryptocurrency markets as a whole and probably the biggest event in 2021 happening over the last 24 hours, and That is tesla coming out with the announcement an official sec filing stating that they made an aggregate, buy order of 1.
5 billion dollars worth of bitcoin. That's right billion. With a b, they made the largest single purchase of bitcoin that we've seen in history, and this is sending signals across the entire corporate world.
Now that tesla has gotten on board with the idea that bitcoin can be a treasury reserve asset. So it leaves us with two important questions that we need to talk about here: first off, who's next to the equation? What company next are we going to see coming in and buying bitcoin or other digital assets, and on that point of other digital assets? What does this mean for the broader cryptocurrency space? We're, going to go ahead and read the fine print of what tesla stated themselves, but before we dive straight into that, i want to ask you guys if you are interested for those who have been keeping up with my startup digifox.
We're, actually hiring and expanding our team at the moment in all different categories throughout the company. So if you & # 39, ve either worked in the crypto industry before or are looking to get your foot in the door.
With previous experience and a previous interest in the general space of crypto as a whole feel free to check out, the google form that i'll have linked down below in the description it takes about five ten minutes.
In this case, we'd love to hear if you guys are interested as a potential candidate to join the digifox team. There's, a ton of roles for design engineering, marketing business development so feel free to check it out.
If you're interested, we'd love to hear from you guys, but let's. Go ahead and dive straight into the charts here guys because just back a couple of days ago, right back at the kind of beginning of the month here when we started in february, we set out on a prediction that in february we would test up to 50 000 in price, for bitcoin and as crazy as that might have sounded to some people.
Well, we're, just inches away from that price target sitting at around 46 000 and over the last couple of hours being around 48 000 setting new all-time highs. For bitcoin, and we're, not even towards the end of the month here, bear in mind so again.
This is again a great point here about how cryptocurrency markets as a whole, just like a lot of other traditional markets, can surprise people. When euphoria and excitement come in when new paradigms happen, where people start to perceive an asset as much more valuable than they did before, as more people get on board with the idea, the value proposition that bitcoin or other assets offer prices can start to go vertical And that was the case yesterday, as there was an official sec filing early in the trading hours before the market that popped up the price of bitcoin over nearly 20 in a single day, one of the biggest single day gains in a very long period of history.
After hearing the announcement that tesla had acquired over 1.5 billion dollars of bitcoin, this is the fine print from the sec's database themselves. We'll, go ahead and read through it here. This is a new clause uh here that they wanted to file in their new 10k.
In this case, we hold and may acquire digital assets that may be subject to volatile market prices, impairment and unique risks of loss. 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. As part of this policy with which was duly approved by the audit committee of our board of directors, we may invest a portion of such cash and certain alternative reserve assets, including digital assets, gold bullion, gold exchange, traded funds and other assets as specified in the future.
Therefore, we invested an aggregate 1.5 billion dollars in bitcoin under this policy and may acquire and hold digital assets from time to time or long term. Moreover, we expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis which we may or may not liquidate upon receipt.
This right here guys is massive news. Okay, now let's, just go ahead. First off and talk about, like the direct price appreciation benefits that a 1.5 billion dollar buy order is going to do to bitcoin right.
The reason price moved like it did yesterday was not per se of tesla. Buying it they had already purchased it. So this probably explains a lot of the upward price action that we saw as the market started to pull back.
Tesla was probably, as they'd, set this clause in january, setting the stage here to start acquiring some amount of bitcoin as time progressed, and luckily a 1.5 billion dollar buy order is going to be a big chunk of that support.
You need to keep price where it was. Price could have gone a lot lower without that buy side demand and that's. What allowed us to again in this case, set the stage where we were able to get above this line of resistance, make it support and pop out against this previous point of support and previous resistance in the past, continuing this cycle towards that big, even level of Fifty thousand dollars that we're targeting for february, but this is one thing here right: first off we don't know if tesla is going to acquire more or less in the future.
That's. The really exciting thing here right is that not only tesla could possibly still go out and buy more, but what stage of precedent does this set here for everyone across the state when tesla bear in mind here for those who don't know, tesla Has absolutely exploded this year in regards to the stock price, and we can see here on the chart, as i'll pull it up here.
If we just take a look at the long-term trend, tesla has grown from being again a multi-billion dollar electric vehicle company to nearly a trillion dollars. You can't see here at the bottom here. Actually i can scroll up.
Maybe you guys can see it there in that case, on the statistics here, tesla's. Market cap right now is 818 billion dollars and because of this, and due to the fact that they have a lot of shares as the company and also as well as its board members.
In this case, they're. Able, in this case, to be able to continuously provide cash, they & # 39. Ve also turned cash positive. In this case they have operational cash for their business. They now have the ability, as they've exploded as a company both on revenue and then also as well in regards to the valuation of their stock.
To start to reallocate some of that value into alternative assets like bitcoin that might serve as better reserve assets for their balance sheet. This is the same exact philosophy that companies like microstrategy have had over the last year, seeing bitcoin as an asset to hedge against inflation is an asset to grow the balance sheet and possibly boost the profitability of companies from their normal operational um.
You know basically out in standard operations in this case that they would generate revenue from and to me, this is going to set the stage for tesla to go to being a trillion dollar company the more and more they do this.
But it also begs the question here with such a large company right, we've, originally seen the micro strategies of the world and for those who don't know microstrategy was you know, i think at the time about a two to Three billion dollar company - it was a small mid-sized technology company that had been around since the dot-com er been around for some time, but it wasn't a headline company in this case, michael saylor, really was the headline figure being the bold person to Kind of push for this narrative - the question here we have to ask is what company is going to be next in this equation? What company is going to play that role in expanding things going forward? Who's, going to follow in the footsteps of tesla? That's, going to push bitcoin's price up towards 50k? Who has the large cash balance sheet? That's, looking to allocate it to something and doesn't know what to do with that cash.
Well, there's. A lot of different companies out there that we can look forward to. But i got to tell you one of them that i think is not going to want to get caught behind a technology company who originally didn't have its focus in payments, but certainly wants to lead at the forefront of payments, as it can Be a massive industry going forward is apple.
Take a look at this report here. The royal bank of canada recently put out a report stating that apple itself is a company, is not only well positioned to offer cryptocurrency wallet or digital service technology, but, along with this as well, believes that it could play a role in lead frogging.
The stock up 25 alone, i got ta, say guys um to think that after tesla making this move, we're, going to sit silently and see a stagnation period where no other companies are going to get on board. With this idea of buying bitcoin.
That this is just a dead trend or kind of a short-term bubble of speculation is, is far far away from the reality. We need to put our thinking caps on here and realize what it means to every single executive, every single board of director, every single person who is influenced about a company's, balance sheet every corporate treasurer, what it means when tesla uses around seven To eight percent of its cash reserves to buy bitcoin it's; no longer criminal money on the internet.
It's. No longer the speculative one wave bubble, that's, going to die out eventually and to all the naysayers. Now they practically have new arguments here. Bitcoin is consecutively, set higher lows and higher highs because of its fixed monetary policy, its finite supply and the world is waking up that this is the ultimate corporate treasure asset.
It is the ultimate savings vehicle that can combat the trillions upon trillions of dollars of money that is being lost through savings accounts, cds through bonds and treasury notes. All these different traditional vehicles that were supposed to provide protection for companies in times of need of safety.
Bitcoin is doing a better job of that way beyond a better job of these different assets. It's, a really exciting time to be here guys because i don't know when it's going to happen. I don't know if it is officially going to happen, but i will say that i'm.
Pretty damn confident apple is going to follow this route. If not, they're already working towards it, and i have no doubt that microsoft. I have no doubt that netflix that all these other companies out there who might have cash on their balance sheet are not going to be left behind.
They want a stake in this. There is a a general stigma here in this case that comes with bitcoin, which is that you know this asset class only has 21 million coins that will ever be created. Four to five million of those are lost forever and they & # 39.
Ll, never be reclaimed back. So you know who's, going to be grabbing those couple million bitcoins right, microstrategy and a few other companies have already swallowed up hundreds of thousands themselves.
Long-Term investors have held dozens of thousands of cryptocurrencies like the winklevoss twins. How much is apple gonna have to pay for their bitcoin and really how much bitcoin are they gonna be able to buy without pushing prices up too high? This is what a truly finite asset looks like guys, an emerging finite asset and again i think this is going to really i mean i just didn't expect to be honest, that we would see a company like tesla leapfrogging in so early to This, when tesla is buying this much bitcoin and we have hundreds of companies across the world who will probably follow in their footsteps.
I don't think any of the data science models, the prediction models for bitcoin's. Price are going to hold true because we're, going to be well beyond that. By that point, this is going to give us the necessary liquidity to drive bitcoin towards 100k 200k.
Who knows the expanding cycles play out? We could be setting up for a very, very high price potential here for bitcoin breaking beyond that line of resistance that we've. Seen in the past on the logarithmic chart - and i'm happy to be on here on this journey with you guys during this crazy time.
So if you like this video, consider dropping a like leave a comment as to what you think about this news guys. Do you think that tesla's gonna buy more? Do you think the companies will follow, or do you think that this is a fad? I'm curious to hear from you guys and again, if you're interested check out the application form here for digifox.
Again, we'd love to hear from you guys and for those of you who are long-term viewers of the channel and stuff who are in the in the trenches of crypto and they're. Looking to make your move in the industry, this might be the time so anyways guys.
Thank you all so much for watching. I hope you're having a fantastic day wherever you are, and i'll see you all in the next video take care. Everyone