Tesla Inc (TSLA.O) Chief Executive Officer Elon Musk tweeted on Sunday that the electric carmaker will resume allowing bitcoin transactions when miners who verify transactions use more renewable energy.
Tesla will resume accepting bitcoin as payment once the cryptocurrency’s power-hungry miners go halfway green, CEO Elon Musk tweeted.
Musk halted Tesla’s months-old crypto foray in mid-May citing environmental concerns. But “when there’s confirmation of reasonable (~50%) clean energy usage by miners with the positive future trend, Tesla will resume allowing Bitcoin transactions,” he said in the tweet.
It is unclear how Musk will fact-check miners‘ clean energy usage as there is widespread debate over where the industry currently stands. Even so, the comments provide a first benchmark for reinstating bitcoin payments at Tesla.
Musk’s tweet also reiterates his defense of having sold 10 percent of the electric vehicle maker’s bitcoin stash in Q1 and would also seem to indicate the company hasn’t sold anymore.
Cash App’s Quarterly Bitcoin Revenue Triples Despite BTC Impairment Loss For Square
Jack Dorsey’s Square made more than 90 percent more gross profit than the same period last year, with $546 million coming from Cash App’s Bitcoin services.
Jack Dorsey’s Square has reported a 200 percent increase in Bitcoin revenue for the second quarter year-on-year (YoY).
The company announced the impressive earnings figures in its second-quarter shareholder letter on August 1. In the report, Square revealed its total gross profit grew 91 percent YoY to $1.14 billion.
Bitcoin services drove $2.72 billion in revenue for the app, with a gross profit of $55 million, respective increases of 210 percent and 223 percent respectively year-on-year. Cash App generated a gross profit of $546 million overall, up 94 percent YoY.
“Bitcoin revenue and gross profit benefited from year-over-year increases in the price of bitcoin and bitcoin activities, and growth in customer demand.”
However, compared to the first quarter of this year, Bitcoin revenue and gross profit decreased and is down 22.3 percent from 3.5 billion.
Square attributed the weaker performance to the more than 50 percent retracement suffered by the broader crypto markets during May and June.
Square also reported an impairment loss of $45 million on the Bitcoin it holds. As Tesla holds its Bitcoin (BTC) as an “intangible asset,” accounting rules require the firm to report an impairment loss when the asset’s price drops below its cost basis. Square is also not required to report increases in the value of its intangible asset holdings until the position is realized through a sale.
According to Bitcoin Treasuries, Square currently holds 8,027 BTC worth an estimated $320 million at the time of writing.
Square recently bought 3,318 BTC in February for $170 million, adding to its initial purchase of 4,709 BTC in October 2020.
On July 30, Cointelegraph reported that mobile software firm MicroStrategy pledged to buy more BTC despite an impairment loss of $425 million on its Bitcoin stash for Q2. Tesla also reported an impairment loss of $23 million for the quarter.
BTC Gains 15 Percent In 3 Hours Amid Tight Squeeze
The price of Bitcoin has surged more than 10 percent in just a few hours earlier today, with prices quickly surging from roughly $35,000 to tag just shy of $40,000 on July 26.
Price action shows a violent short squeeze that occurred as prices broke above $35,000, with bullish momentum suddenly accelerating as prices quickly rallied 15 percent from roughly $34,000 to $39,800 over the course of fewer than three hours.
By contrast, BTC had taken the past five days to gain from roughly $30,000 to $34,000. As of this writing, Bitcoin is changing hands for roughly $38,500.
According to CoinMarketCap, Bitcoin is the top gainer for the past 24 hours among the top 30 crypto assets by capitalization, posting a gain of nearly 13 percent.
The sudden rally has seen numerous technical indicators return to offering bullish signals, popular analyst, Lark Davis, informing his 426,000 followers that BTC’s price is again trending above its 50-day moving average.
Polkadot and Chainlink are also among the day’s top gainers, each having increased by more than 10 percent in the past 24 hours.
With Dogecoin up by 11.83 percent for the day, it would appear the impact of Elon Musk’s Twitter account on the meme-coin’s markets is beginning to wane, with Tesla’s CEO posting a meme asserting that “Dogecoin is money” on July 25.
Despite Musk’s efforts, Dogecoin appears to have moved in lock-step with the broader altcoin markets, with most large-cap crypto assets having posted high single-digit gains for the day.
Despite next month’s fast-approaching London upgrades for Ethereum, Ether is also lagging behind the pack, posting a gain of 7.82 percent in the past 24 hours.
As such, ETH is the weakest-performing cryptocurrency ranked among the top 10 by capitalization for the past day.
Bitcoin Will Hit All-time Highs Again This Year, Crypto is Inevitable Future: deVere CEO
Bitcoin will hit its previous all-time highs again by the end of the year with prices driven higher by the “carefully considered arguments” and “new measured tone” being put forward by the likes of Elon Musk, Jack Dorsey and Cathie Wood, affirms the CEO of deVere Group.
The bullish Bitcoin price prediction from Nigel Green, chief executive and founder of one of the world’s largest independent financial advisory and fintech organisations, follows Wednesday’s The B Word Conference.
At the live virtual event, Tesla and Space X founder Elon Musk, Twitter founder Jack Dorsey, and Ark Investment’s Cathie Wood all advocated for the cryptocurrency and talked about its massive future potential.
Bitcoin surged as much as 10% on the back of their comments.
Nigel Green says: “Musk, Dorsey and Wood are three of the most important and forward-thinking business leaders of our time. What they say matters.
“Crucially, the tone was less sensationalist than it has been in past, with all the panelists putting across carefully considered, fact-based arguments about why they are all bullish on the future of Bitcoin and crypto generally.
“This will not have gone unnoticed by investors.
“As such, I believe that with these hugely influential figures pursuing this stance and this new tone, we can expect the price of Bitcoin to hit, or even surpass, its mid-April all-time high of $65,000 by the end of 2021.”
Demand will boom because of what Musk, Dorsey and Wood said for two main reasons, says Mr Green.
“First, both institutional and retail investors were given a considerable crypto confidence boost by comments the panelists made about their own multinational businesses and their visions for the future.
“Musk, one of the world’s most successful and richest entrepreneurs, confirmed for the first time that both of his companies, Tesla and Space X, and that he personally, owned Bitcoin. And that neither he nor his companies, will sell the cryptocurrency. He also revealed Tesla is likely to restart taking payments in Bitcoin.
“Similarly, Dorsey hinted that Twitter will soon allow advertisers to pay for advertising on the giant social platform in crypto.
“He went on to say the cryptocurrency could function as the internet’s ‘native currency’ and this would help all businesses in a much faster way.
“Second, Dorsey and Wood – and Musk to a lesser degree – addressed the environmental impact of Bitcoin mining, an issue which has weighed heavy on the price in recent months.”
Wood, in particular, spoke about how Bitcoin aligns with the environmental, social, and governance (ESG) investing growth trend.
She highlighted how Bitcoin “will be much more environmentally friendly—certainly more than traditional gold mining or the traditional financial services sector. In many ways, it already is.”
She added that Bitcoin has much to offer in the ‘social’ bracket “by providing financially underserved people with “access to payment technology… everywhere around the world without friction”; and the ‘governance’ bracket by offering transparency “unlike the opaqueness of financial systems and the toll-takers in the traditional financial world.”
The deVere CEO affirms: “All of this will help drive Bitcoin prices higher and this will have a knock-on effect to the wider crypto market.”
He concludes: “The message from mega-influencers Elon Musk, Jack Dorsey and Cathie Wood was clear: crypto is the inevitable future.”
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