In a recent interview with Time Magazine, Michael Saylor said that Elon Musk’s Twitter conversation with MicroStrategy’s CEO inspired Tesla’s decision to spend $1.5 billion in bitcoin.
Musk tempted him late last year by tweeting a suggestive meme drawing of a monk praying with his eyes closed as a prostitute in the background serves as a symbol for bitcoin. Saylor responded to Musk’s post by telling him that translating Tesla’s balance sheet from dollars to bitcoin would be a “$100 billion favor” for its shareholders. Musk answered by asking if such massive transactions are feasible, to which Saylor replied “yes” and offered to share his strategy with the Tesla CEO.
Tesla made the most significant bitcoin endorsement to date a little over a month after their informal conversation. Announcing that it will not only spend $1.5 billion on the world’s most famous cryptocurrency, but it will also start accepting crypto payments for its goods shortly.
Saylor described Tesla’s leap as an “inflection point,” said the narrative around bitcoin confidence rapidly shifted from cynicism to growing adoption. He also said that commenting on exchanges with the CEO of another public corporation is “inappropriate business decorum,” but admitted that their Twitter exchange affected Tesla’s decision.
Saylor dismissed the theory that bitcoin is an indicator of excessive investor euphoria, marked by optimism about price rises. Bitcoin was stable at $57,380 in early European trading on Monday, but it is up nearly 95% year to date. According to Marc Lichtenfeld, CEOs of publicly listed firms are buying billions of dollars worth of bitcoin with shareholder money, a chief income analyst at The Oxford Group.