Dan Ives, the senior equities analyst at investment banking firm Wedbush Securities, says he expects more publicly-traded companies to jump on the Bitcoin bandwagon in the coming months.
In a new CNBC Squawk Box interview, Ives says he believes Tesla will add more to its $1.5 billion Bitcoin position as the electric vehicle maker sees tremendous results from its initial investment.
[adinserter block="1"]“I think this is not just a fad. I think Tesla’s going to continue to double down on its Bitcoin investment and you’re seeing from a transaction perspective as well. But no doubt, they’ve made about a billion dollars on paper from Bitcoin. That’s more they made from profit in all of EV (electric vehicle) sales 2020. I think it just speaks to what we’re seeing in terms of this market…
They’re going to dive into the deep end of the pool in Bitcoin because they’re not just doing it from an investment perspective but from a transaction perspective.”
The Wedbush Securities managing director also notes that he expects more public companies to follow Tesla’s footsteps as the theme of adding BTC into corporate treasuries becomes more mainstream.
“In our opinion, we think 3% – 5% of public companies will go down this route over the next 12 – 18 months from an investment perspective. But until regulatory goalposts are put in, we don’t think it ratchets up too much beyond that…
I think we’ve seen MicroStrategy, Tesla, Square and some others, I think this is a trend that could be come more mainstream. I think you need regulatory goalposts put in for more boards and companies to go down this route but I think it’s going to have a ripple effect in terms of what Musk and Tesla have done here.”
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