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Critical discussion: what happens if Tesla, Microstrategy, Square etc need to sell a large amount of BTC?

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by COINS NEWS 205 Views

We all know that these tech companies own significant amounts of BTC. We also know that tech companies and innovative sectors that utilize a great deal of debt get hit hard by rising interest rates (see my previous post about the risks of tech companies in a high interest rate environment: https://np.reddit.com/r/CryptoCurrency/comments/s2v2fk/this_analysis_of_the_ark_innovation_fund_reminds/?utm_medium=android_app&utm_source=share ).

Look at what Do Kwon's Terra BTC buys did for the price of BTC. What are the odds that a company like Tesla needs to reach into BTC reserves, and what consequences are there, for the market price and for the concept of BTC as a corporate reserve, if they have to sell a large amount of BTC at a loss? Something to think about and debate the risk of...

Edit: I guess the real debate here is 1) what would it take before they have to sell in a down market? and 2) how much would that hurt the longterm prospects of other companies replicating their strategy of using BTC as a reserve?

submitted by /u/Awhodothey
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