Up to 5% of public companies will follow Tesla’s Bitcoin buy, says Wedbush analyst

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Tesla’s strategic embrace of Bitcoin (BTC) could have a dramatic affect on company adoption of the digital asset, in keeping with Dan Ives of Wedbush Securities. 

In a Monday interview with CNBC, Ives said Tesla’s publicity to Bitcoin is “not only a fad,” however a part of a long-term technique that’s pushed by an funding thesis and enterprise thesis.

“I feel Tesla goes to double down on its Bitcoin funding,” he mentioned.

“No double that is one thing Elon Musk and Tesla […] they’re going to dive into the deep finish of the pool on Bitcoin as a result of they’re not simply doing it from an funding perspective however from a transactional perspective.”

Ives was referring to Tesla’s current determination to allocate $1.5 billion to Bitcoin and start accepting the digital asset as a form of payment. On the time of the interview, Tesla had made about $1 billion in paper positive factors on its BTC commerce. “That’s extra they’ve created from a revenue in all EV gross sales” in 2020, he mentioned.

Wedbush Securities believes that 3% to five% of publicly-listed firms will go down the Bitcoin rabbit gap over the following 12 to 18 months, though their adoption will likely be restricted to investments solely, Ives mentioned. The 5% threshold is unlikely to be damaged with out extra regulatory readability round BTC.

Ives’ commentary on Tesla mirrors his recent analysis on Bitcoin, the place he described the digital asset as a part of a a lot bigger adoption story. Bitcoin mania “just isn’t a fad in our opinion, however somewhat the beginning of a brand new age on the digital forex entrance,” he mentioned.