Let's Look At Companies Tied To Bitcoin
Tim Knight | Apr 29, 2021 04:53PM ET
While every other asset on the planet is hitting lifetime highs every single weekday, Bitcoin has lost its mojo. It is down more than $10,000 from its peak. And if you can put on your science fiction hat and imagine a day in which assets are deflating, I think you’ll see cryptos collapse.
In the meanwhile, let’s look at a few corporations that have utterly abandoned their normal business and have completely tied their fate to the $BTC chart.
We start with MicroStrategy (NASDAQ:MSTR) – a firm that has been around for decades, although no one has ever met anyone who has ever done business with it. It is neck-deep in BTC purchases, having even borrowed billions to buy more. Let’s just say a failure of that horizontal would mean doom-a-palooza.
Similarly, Riot Blockchain (NASDAQ:RIOT) has a long history of making dramatic, sweeping moves based on crypto’s machinations. I strongly suspect much lower prices in the months ahead.
Although they make cars, Tesla's (NASDAQ:TSLA) profits can only be attributed to government-mandated carbon credits that normal car companies are forced to hand over to Elon’s company, and –– embarrassingly enough – crypto trading. Perhaps the whole Saturday Night Live host in a couple of Saturdays will turn things around.
And the totally amped-up version of this is Cathie “she looks like a nice lady” Wood’s ARK empire, which has the double-whammy of tying itself to Bitcoin as well as Tesla (which itself is tied to Bitcoin). ARK Innovation ETF (NYSE:ARKK):
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Simply stated, if the chart below keeps slipping, you can expect every single stock above to do the same.
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