We noted that Tesla's buy of $1.5 billion in bitcoin wasn't a huge surprise to us yesterday. But it turns out we might not have been the only people who weren't surprised by the purchase.
That's because a Reddit post that's making its rounds on social media this morning appeared to leak that Tesla had "just bought 800 million worth of Bitcoin" when it was posted on January 2, 2021. The post was made in the "r/Bitcoin" subreddit.
The post claims to be from a software developer who claims to have developed a bot to help the company buy bitcoin.
"I am a software dev working at R&D at Tesla in California, over the past 72 hours our company bought 24701 BTC at an average price of 33142$," the post says.
It continues: "The way we did it was buying small amounts of BTC every few seconds and big amounts of BTC after a dip of at least 1.5%. We did this with a bot, which we developed with Python and NodeJs."
"I have no idea what will happen once this reaches the newspapers but I think the price will explode even more," it concluded. "Thank me later."
"Thanks, Elon," one of the comments to the post reads.
Hilariously, the post also seemed to make its way over to the "r/Tesla" subreddit where it had zero upvotes and was roundly rejected as being fraudulent.
Either way, it turns out a post that would have been ignored as run-of-the-mill trolling weeks ago was quite accurate. And while Tesla's cost basis can't yet be confirmed, current pricing would mean that Tesla is up more than 40% on its initial $800 million stake in BTC, if accurate. That means that anyone who read the post and took the Redditor at his word could have profited similarly.
Recall, yesterday Tesla disclosed that it had bought $1.5 billion in bitcoin. In retrospect, it was not only inevitable but clearly obvious... at least to those who read us.
Back on January 9, when discussing the recent surge of institutional and corporate purchases of bitcoin and conversion of cash into the cryptocurrency, we said that it was just a matter of time before Elon Musk joined MicorStrategy and bought "several billion" in bitcoin. Specifically, in "How Bitcoin Hits $100,000 Next: Morgan Stanley Boosts Stake In Microstrategy, Opening The Floodgates" we said...
One such company which we are convinced will announce it is converting billions of its existing cash into bitcoin, is none other than Tesla, whose CEO Elon Musk was urged by MSTR CEO Saylor to make a similar move with Tesla’s money. And since Musk, already the world's richest man thanks to the most aggressive financial engineering on the planet, has never been one to shy away from a challenge, we are absolutely confident that it is only a matter of time before Tesla announces that it has purchased a few billion bitcoin.
Our confidence was based on the following late-December exchange between Elon Musk and MSTR CEO Michael Saylor:
Are such large transactions even possible?— Elon Musk (@elonmusk) December 20, 2020
One month later, One River's Eric Peters clearly agreed with our take and shortly after Elon Musk tweeted his appreciation of bitcoin, the clearest sign yet of what was coming...
In retrospect, it was inevitable— Elon Musk (@elonmusk) January 29, 2021
....said that "It’s possible Elon hasn’t yet bought his bitcoin, and pre-announced the intention, lifting the price ahead of his purchases. But sane people don’t do such things."