All the same, this is very different from the standard money management. Bitcoin is a highly volatile asset that you would not typically associate with the cash reserves on the balance sheet of a listed company worth close to a trillion US dollars. As recently as March 2020, the price dipped below US$4,000. Even in 2021, the price fell more than 30% before its most recent surge.
Tesla has put almost 8% of its reserves into the cryptocurrency. If Apple, Microsoft, Facebook, Twitter, and Google were to do the same, this would translate into almost another US$7 billion investment. This is less than 1% of the total current worth of the bitcoin market, but the signal that it would send to other companies and retail investors would likely trigger a bull run that would make the current market look comparably stable. Some crypto analysts are already predicting that the price will rise to US$100,000 or even US$200,000 before 2021 is out.
Such a rise would drive up the value of the bitcoin on…