• Home
  • Contact Us
  • Privacy & Policy
Thursday, May 26, 2022
Finances Advise
No Result
View All Result
  • Home
  • Business
  • Commodities
  • Crypto News
    • Block chain
    • Bitcoin
    • Ethereum
    • Litecoin
  • Finance
    • Financial Advisors
    • Personal Finance
    • Market Insider
  • Forex
  • Investing
  • Stocks
  • ICOs
  • Trading
  • Home
  • Business
  • Commodities
  • Crypto News
    • Block chain
    • Bitcoin
    • Ethereum
    • Litecoin
  • Finance
    • Financial Advisors
    • Personal Finance
    • Market Insider
  • Forex
  • Investing
  • Stocks
  • ICOs
  • Trading
No Result
View All Result
Finances Advise
No Result
View All Result
Home Crypto News Bitcoin

Bitcoin Affect? Billionaire Fund Manager Sells 1.8M Tesla Shares for Clients

by admin
March 5, 2021
in Bitcoin
0
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter


Less than a month after US carmaker Tesla revealed its $1.5bn Bitcoin holdings, one of the company’s most vocal bullish investors announced that he had sold 1.8 million of its shares for clients.

Ron Baron, the founder of Baron Capital, an investment management firm in New York, said his firm sold TSLA stocks for its clients, believing that they were taking too much percentage of some of their portfolios. Nevertheless, the billionaire investor clarified that he did not sell any of his 1.25 million Tesla shares, reiterating his long-term bullish outlook for the Fortune 500 company.

“It was painful selling every single share,” he added.

Bitcoin The Main Culprit?

The sell-off took place over the course of the previous six months. It reflected Baron Capital’s systematic plans to secure profits for their clients as the Tesla stock boomed by 338 percent to $653.20 apiece. Nevertheless, the firm did not reveal the number of shares it sold after Tesla revealed that it had reallocated 8-10 percent of its cash reserves to bitcoin on February 8.

According to reports, Baron Capital was holding just over 6.1 million Tesla shares as of Feb. 28. The firm bought them at an average cost of $42.3 per share.

Tesla stock has slipped by almost 25 percent after its $1.5bn investment in Bitcoin. Source: Nasdaq: TSLA on TradingView.com

The Tesla stock started correcting lower after logging its record high of $900.40 on January 25. According to its filing with the US Securities and Exchange Commission, the company had started allocating Bitcoin in the same month to “further diversify and maximize returns” on their cash reserves.

Tesla did not disclose the price at which it bought bitcoins. But a report from CNBC noted that the firm’s profit from its unique investment strategy was north of $1 billion as of February 21.

Treading Uncertain Waters

Many traditional economists and strategists criticized Elon Musk’s decision to exposure Tesla to an asset that is notorious for its price volatility. That included Nouriel Roubini, an economist who correctly predicted the 2008 financial crisis, who advised other corporates firms to avoid copying Tesla’s bitcoin purchase.

The Tesla stock slipped by approximately 25 percent following its cryptocurrency investment. Nevertheless, it is still unclear whether the share’s correction appeared due to its overvaluation—as is the case with any other tech stock—or fears that Tesla would lose its cash by exposing itself hugely to the volatile Bitcoin market.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin up by more than 25 percent following Tesla’s investment. Source: BTCUSD on TradingView.com

Mr. Baron, who showed his initial resentment to Tesla’s crypto investment, said that Elon Musk could do whatever he thinks with his cash on Thursday. But for him, investing in growth stocks is the best way to beat inflation.

“You have to protect yourself against inflation. What we do is invest in these great companies that can grow fast,” he stated.



Tags: 18MAffectBillionaireBitcoinClientsfundManagersellssharesTesla
  • Trending
  • Comments
  • Latest

A 48-year market vet warns that the Fed will be forced to tighten policy ‘way sooner’ than investors anticipate as inflation continues to soar — triggering a stock market crash of up to 80%

August 28, 2021
27-year-old UG graduate now millionaire proposes to girlfriend on b’day in video

27-year-old UG graduate now millionaire proposes to girlfriend on b’day in video

August 9, 2021

‘It’s begging to be destroyed’: A stock trader who says he made more than $100,000 shorting the market during the 2008 crash just bet against the S&P 500 — and warns there’s a ‘fair chance’ stocks are about to drop 25%

September 11, 2021

Stocks tanked in the first quarter, and new research shows there should be a reversal by the end of June

April 15, 2022

Crude oil trades higher on low US inventories

0

Uber Hacking: Customers Not at Risk of Financial Crime, Says Minister

0

Black Friday Merchants Look to Extend Moment of Retail Optimism

0

Hotshot Snapchat Founders Face a Dilemma: Lie Low or Live Large?

0

Crude oil trades higher on low US inventories

May 26, 2022

Why Is South Korea Throwing Money at the Metaverse?

May 26, 2022

FTX’s Bankman-Fried Pitches CFTC on Directly Clearing Customers’ Crypto Swaps

May 26, 2022
Elliott Wave View: GBPJPY Looking for the Next Leg Higher – Action Forex

Elliott Wave View: GBPJPY Looking for the Next Leg Higher – Action Forex

May 26, 2022

Recent News

Crude oil trades higher on low US inventories

May 26, 2022

Why Is South Korea Throwing Money at the Metaverse?

May 26, 2022

Categories

  • Bitcoin
  • Block chain
  • Business
  • Commodities
  • Ethereum
  • Financial Advisors
  • Forex
  • Investing
  • Litecoin
  • Market Insider
  • Personal Finance
  • Stocks

Site Navigation

  • Home
  • Contact Us
  • Privacy & Policy

We bring the Best and latest Crypto News

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Business
  • Commodities
  • Crypto News
    • Block chain
    • Bitcoin
    • Ethereum
    • Litecoin
  • Finance
    • Financial Advisors
    • Personal Finance
    • Market Insider
  • Forex
  • Investing
  • Stocks
  • ICOs
  • Trading

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.