Elon Musk's Tesla Will Lose Money On Bitcoin Purchase, Predicts Peter Schiff: 'That Was A Mistake'

Economist Peter Schiff called Tesla’s investment in Bitcoin BTC/USD a “mistake,” predicting that the Elon Musk-founded tech giant will incur financial losses.

What Happened: While congratulating Musk on his X (formerly Twitter) takeover, Schiff made a Freudian slip by writing Bitcoin instead of X on Wednesday.

After being pointed out by other users, the Bitcoin critic accepted his mistake but refused to delete the post.

Instead, he used it as an opportunity to question Tesla’s Bitcoin acquisition. “That was a mistake and Tesla will lose money on that purchase,” Schiff argued.

That's funny. I meant to type X but I wrote Bitcoin. I didn't realize that until I read the comments. I would normally just erase the post. But I'm going to leave it as is. Ironically, Elon also bought Bitcoin. That was a mistake and Tesla will lose money on that purchase.

— Peter Schiff (@PeterSchiff) August 1, 2024

See Also: Trump Odds Tumble Sharply After Biden’s Withdrawal On Crypto Betting Platform; Polymarket Trader Down $72,000 After Betting On Former President

Tesla’s Bitcoin holdings remained unchanged in the second quarter, according to its earnings report released last week. The EV giant reported its net digital assets at $184 million, unchanged since the fourth quarter of 2022.

At a cost basis of $336 million, Tesla has amassed an unrealized gain of 118% on its Bitcon investment, according to data from CoinGecko.

Why It Matters: Schiff’s comments come in the wake of his recent criticism of companies using Bitcoin as a treasury asset. He argued that such a move is akin to gambling with shareholder’s funds.

Schiff also slammed former President Donald Trump's endorsement of Bitcoin at a recent conference, calling it a strategic move to gain political support rather than a genuine commitment to make it a reserve asset.

Price Action: At the time of writing, Bitcoin is exchanging hands at $$63,969.30, shrinking 3.39% in the last 24 hours, according to data from Benzinga Pro. 

Photo Courtesy: Wikimedia Commons

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.