WNBA Commissioner: Our teams are seeing valuations go up from $5M to $260M on average
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New York Post
an hour ago
- New York Post
Tesla lost out on billions of dollars by dumping Bitcoin at worst time
Tesla dumped 75% of its Bitcoin holdings at one of the worst possible times – losing out on billions of dollars in gains. Bitcoin has been trading at near record prices and gained 80% over the past year, pushing digital assets owned by the automaker to a valuation of $1.24 billion. That's far above the $722 million they were worth this time last year. Advertisement 3 Tesla dumped 75% of its Bitcoin holdings at one of the worst possible times. REUTERS But Tesla sold 75% of its holdings in mid-2022, when the digital currency was trading at a mere fraction of its current price of $115,000. If Tesla had held onto all of its Bitcoin, it would be worth roughly $5 billion, according to a CNBC report. Advertisement The $936 million worth of Bitcoin the company converted to cash would be valued at over $3.5 billion. Tesla did not immediately respond to The Post's request for comment. Billionaire owner Elon Musk has made it clear that Optimus humanoid robots and robotaxis are the future of Tesla, but these are pricey and risky bets – and Tesla could use an extra boost of cash. The automaker on Wednesday reported its worst sales drop in a decade and earnings that missed Wall Street estimates. Advertisement Tesla has also been steadily losing overseas market share to Chinese rivals, like electric vehicle maker BYD. Shares in Tesla plummeted 8% on Thursday, though it gained about 5.5% Friday. 3 Elon Musk looks on during a news conference with President Trump in the White House in May. AFP via Getty Images The stock is down about 15% so far this year, while most tech stocks and the Nasdaq have been on an upward tear. Advertisement President Trump's tariffs and the end of federal EV tax credits are also expected to hit the company hard. The company's Bitcoin holdings have helped with profitability, with gains of $284 million in the second quarter when its total net income was $1.17 billion. But it would have enjoyed even greater gains had Tesla held onto its original holdings. The automaker invested $1.5 billion in Bitcoin in early 2021 as Musk became an outspoken supporter of the digital currency online. 3 Elon Musk and President Trump speak to reporters as they display a Tesla vehicle in the White House driveway. REUTERS Bitcoin exploded 20% in a day in January 2021 after Musk added #bitcoin to his account on Twitter, now known as X. Musk took over and rebranded the social media platform the following year. In mid-2022, however, interest rates were on the rise and inflation was stubbornly high. Investors grew afraid of risky bets like cryptocurrency. Advertisement Tesla announced in the second quarter of that year that it sold 75% of its Bitcoin holdings to add cash to its balance sheet. Bitcoin plummeted 60% in 2022, but it has since sharply turned around, experiencing steep gains as Trump has spun himself as a pro-crypto administration and made promises to create a strategic Bitcoin reserve.
CNBC
an hour ago
- CNBC
New bill in Congress would reward companies that give stock to rank-and-file employees
A bipartisan bill introduced in Congress this week would create a new tax incentive for public companies to distribute stock to their rank-and-file employees. The new SHARE Act would give a 3 percentage point discount on the corporate tax rate to large companies that distribute at least 5% of their stock to the lowest paid 80% of employees. It is cosponsored by eleven members of the tax-writing Ways and Means Committee, both Republicans and Democrats. "The bottom line is that right now in America, the top 10% of wealthy people in the country own 93% of the stock, and the lowest 50% people in the United States of America own 1% of the stock," said Rep. Tom Suozzi, D-N.Y., a sponsor of the bill, on CNBC's Squawk Box Friday. According to Suozzi, the Share Holder Allocation for Rewards to Employees (SHARE) Plan Act, when fully implemented, could result in nearly $4 trillion in stock value being transferred to almost 40 million middle-class Americans. For the idea to work, companies would likely have to dilute, issue or buy back their shares to distribute them to employees, said Suozzi. But he argued the cost of that would be firmly offset by the 3% tax rate cut. "It's a big idea," Suozzi said. "It'll result in some initial dilution of their share price, probably, but once they get the tax rate discount, it'll result in an increase." The new bill could also incentivize employee loyalty, he added, because more workers would hold a stake in the companies that employ them. For companies with massive market caps, like Amazon or Walmart, Suozzi said they could cap the awards at $250,000 worth of stock per employee, instead of giving the full 5%, depending on which makes more sense economically for the company. The lower tax rate would be available to companies in a year where they granted at least 1% of their stock, or after they have cumulatively granted at least 5%, according to a fact sheet on the bill. The value of those distributions would be tax deductible for the companies, and the value of the stock granted to each employee would not be counted as part of that person's gross income for tax purposes. Suozzi said the bipartisan support for the bill shows how Republicans and Democrats are coming together to "stop attacking each other and start attacking the problems that we face." "We need to expand the ownership society in our country so that people who go to work every day can participate in the great success of this great country," said Suozzi.
CNBC
an hour ago
- CNBC
Trade Tracker: Stephanie Link buys more Las Vegas Sands
Stephanie Link, CIO at Hightower, joins CNBC's "Halftime Report" to detail her latest purchae of Las Vegas Sands shares.
