Share this article
Tesla's Bitcoin Buy May Not Trigger Wave of Corporate Demand, Says JPMorgan
Bitcoin's price volatility may put corporates off from emulating Tesla's decision to invest in the cryptocurrency.
Updated Sep 14, 2021, 12:09 p.m. Published Feb 10, 2021, 10:39 a.m.
While crypto traders foresee major corporates copying Tesla's decision to invest in bitcoin, investment bank JPMorgan suggests otherwise.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
"The main issue with the idea that mainstream corporate treasurers will follow the example of Tesla is the volatility of bitcoin," JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note reported by Bloomberg on Wednesday.
Tesla, the Fortune 500 electric car maker headed by Elon Musk, disclosed its bitcoin investments worth $1.5 billion on Monday, sending the cryptocurrency to fresh record highs above $48,000. Crypto traders expect other corporates to follow suit, arguing Tesla has validated bitcoin's appeal as a reserve asset.
However, according to JPMorgan's strategists, a corporate portfolio's risk levels would rise significantly even with a small exposure to bitcoin, and that could keep other companies from buying in.
"Corporate treasury portfolios are typically stuffed with bank deposits, money market funds, and short-dated bonds, meaning that annualized volatility – or the range of swings during the course of a year – hovers around 1%," JPMorgan wrote, adding that a 1% bitcoin exposure would cause a significant increase in a portfolio's volatility to as much as 8%.
The bank's strategists, however, acknowledged the positive impact of Tesla investment on the bitcoin market. "There is no doubt that this week's announcement changed abruptly the near-term trajectory for bitcoin by bolstering inflows and by helping bitcoin to break out above $40k," they said.
Also read: China Was Questioning Tesla About Quality Problems. Then Bitcoin Happened
JPMorgan had turned bearish on bitcoin last month following the cryptocurrency's failure to keep gains above $40,000. Bitcoin spent three weeks in the $30,000–$40,000 range after setting the then-lifetime high of $41,962 on Jan. 8.
The breakout from that range came Monday following Tesla's announcement. At press time, bitcoin is changing hands near $46,842, little changed over 24 hours.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Michael Saylor's Strategy Made Second Consecutive $1B Bitcoin Purchase Last Week
Despite the continued struggles of its share price, Strategy again funded the purchase mostly via sales of common stock
What to know:
- Strategy last week purchased 10,645 bitcoin for $980.3 million.
- The fresh acquisition was mostly funded by sales of common stock.
- Total bitcoin holdings rose to 671,268 acquired for $50.33 billion, or an average price of $74,972 each.
Top Stories
