Don’t Get So Hype About Elon’s Buying Crypto Plan

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Elon Musk created a poll to ask the internet on Twitter whether to sell 10% of Tesla stock and to buy Bitcoin. Nearly 60% said to sell the stock and exchange it to Bitcoin. Whether he is going to do it is a myth but he already planned to sell Tesla stock because of his tax planning purpose.

 

The option is going to expire soon

His Tesla options will expire soon and taking profits of exercising options will cost him $15B of taxes paid.

 

The common practice of corporation insiders 

This is a common practice of top corporate management who sold stocks to pay off options exercise fees and taxes.

 

$5B worth of stock sold

Elon Musk sold nearly $5B or 3% of his stocks today which $1B was per plan from September and $4B was just sold for other reasons we do not know. 

 

Red flag from the SEC

The SEC has closely watched Elon since the last time a lawsuit was filed against him as a market manipulator and pushed him away from the chair of the Tesla board. Those $4B sales may trigger warnings again from the SEC.

 

Buying crypto

The internet is urging him to buy crypto, particularly Bitcoin. Interestingly, he did not announce buying Doge instead as he announced himself as Lorde Edge.

 

Crypto or not

Whether he will buy crypto or not, is really his choice. However, Elon unlikely just bought crypto blindly to hope and hold to gain profits. Rather he will invest to make projects such as integrating Dogecoin into the rocket launching program or utilizing blockchain for project funding.

 

In conclusion

Elon Musk is a king of memes and he influences many aspects of both the stock and crypto market. However, at the end of the day, a meme is a meme and we do not take it more seriously as advice.


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