Fit the profile
Well, the logical answer might be any company that has a large amount of excess cash melting away on their balance sheets. The Fed's artificial interest regimen has made money basically free for anyone with credit, which has led to a fair bit of monkey business in financial markets.
Stock buybacks, mergers and acquisitions, and other sort of things companies do with free money have been happening at increasing levels over the last decade.
Not that a YOLO call on bitcoin is any less ridiculous, but in this particular span of time when the money creation mechanism has been working overtime, it sort of makes sense.
The kinds of companies that might make such a move are almost certainly leaders in technology. After Tesla, it may well become trendy from a corporate perspective, and we've seen a fair few trends that have gotten completely out of hand lately. Not even gonna name them.
In line with the technology aspect, we might expect that the companies now buying and yet to reveal are bold.
After all, bitcoin is a super-risky asset to hold, and we're not really talking about hedge funds, whose job it is to make such speculative bets.
The idea of this play, of course, is more long-term, and that would imply that they'll need to weigh the very real possibility that they may be holding through a rather large drawdown. As we know, crypto drawdowns can be quite brutal, frequently involving a decline of 80% from the peak or even more.
There's a lot of speculation online at this time about who. My personal picks are Visa, MasterCard, and PayPal, all of whom have been warming up to bitcoin and crypto in the last few months, and who have been rumored to be buying bitcoin.
It will be interesting to see if we can peruse any U.S. Securities and Exchange Commission filings similar to the Tesla one from either of those three.
Basically, all the FAANGM stocks are suspect. Facebook, Apple, Amazon, Netflix, Google, and Microsoft basically fit the bill to a T.
The number one bet on social media though is Oracle. Larry Ellison, who is the founder, chairman and chief technology officer, is reportedly very tight with Elon Musk and frequently advises him on these matters.