Barstool Sports founder Dave Portnoy made a bold move on Monday afternoon, questioning Tesla CEO – and bitcoin collector – Elon Musk related to his cryptocurrency behavior.
Portnoy referenced Musk’s bitcoin purchases, including Tesla’s major investment, but apparently didn’t have the facts just right.
Portnoy’s tweet: “Am I understanding this correctly? Elon Musk buys bitcoin. Then pumps it. It goes up. Then he dumps it and makes a fortune. Listen I own 1 #Bitcoin but #bitcoin is exactly who we thought it was. Just don’t be last 1 #HODLing the bag.”
Musk’s reply seems to differentiate Tesla bitcoin from his own bitcoin.
So did was Portnoy “understanding this correctly”?
Musk tweet a couple of hours later: “No you are not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.”
That significant growth in the bitcoin price after Tesla made the purchase (and Musk tweeted about it) resulted in the company making approximately $100 million when it sold some of its bitcoin.
That was made public by Tesla at its earnings report, also on Monday.
The rising bitcoin tide has lifted all bitcoin boats, as even the fortunes of Dogecoin – a crypto began as a satire – have risen as Musk has tweeted about it.
Dogecoin has gone from less than one cent to as high as 43 cents this year, and was at just more than 27 cents early Tuesday.
As for the cryptocurrency future, Federal Reserve Chairman Jay Powell said last month: “They’re highly volatile and therefore not really useful stores of value and they’re not backed by anything. It’s more a speculative asset that’s essentially a substitute for gold rather than for the dollar.”