Arab Press

بالشعب و للشعب
Tuesday, Mar 17, 2026

Corporate America can't avoid one question. It's Tesla's fault

Corporate America can't avoid one question. It's Tesla's fault

Tesla's $1.5 billion investment in bitcoin has helped legitimize the cryptocurrency as an investment, leading analysts and traders to ask which blue chip company will be the next to take the plunge, buying bitcoin for its corporate balance sheet.

Wall Street analysts have peppered executives at other high-profile companies about possible bitcoin forays during recent earnings conference calls.
GM (GM) CEO Mary Barra said during the automaker's earnings presentation earlier this month that GM didn't have any plans to buy bitcoin just yet.

"We don't have any plans to invest in bitcoin, so full stop there," she said in response to a question from Morgan Stanley auto analyst Adam Jonas.

But she did not rule out the possibility of customers one day being able to buy Chevrolets, Buicks or Cadilllacs with cryptocurrency — just as Tesla is planning to let customers use bitcoin to buy its electric cars and trucks.

"This is something we'll monitor and we'll evaluate. And if there's strong customer demand for it in the future, there's nothing that precludes us from doing that," Barra added.

But executives at other companies, particularly financial corporatins, remain unconvinced that bitcoin should be part of their cash-management strategies.
"We're not currently investing in cryptocurrency," said Leslie Barbi, chief investment officer with Reinsurance Group of America (RGA), during an earnings conference call last week.

"My understanding is currently the accounting is different than other currencies and can create more volatility," she added.

Volatility is a problem. The big swings in price will probably keep other major companies from putting corporate money into bitcoin.

Sure, the returns have been enormous as of late. But companies want stability from their corporate investments -— not an asset that has swung from a low of just above $4,000 to nearly $50,000 in the past year.

"We watch cryptocurrencies," said Christine Hurtsellers, CEO of Voya Financial's investment management unit during an earnings call. But she added that factors driving the big price swings can "still tend to be somewhat opaque at times." That's the reason why Voya (VOYA) won't invest for now.

Taking the crypto plunge


Other companies are willing to embrace the risk.

So far, Tesla (TSLA) and software company MicroStrategy (MSTR) are the two most prominent firms to buy bitcoin. Payments giants Square (SQ) and PayPal (PYPL) now let customers buy and sell bitcoin (XBT) and use the cryptocurrency for e-commerce transactions. MasterCard (MA) and Bank of New York Mellon (BK) are dipping their toes in the digital currency waters too.

Twitter (TWTR), which like Square is run by Jack Dorsey, is also looking more at bitcoin and other cryptocurrencies.

"We have done a lot of the upfront thinking to consider how we might pay employees should they ask to be paid in bitcoin, how we might pay a vendor if they asked to be paid in bitcoin and whether we need to have bitcoin on our balance sheet," said Twitter CFO Ned Segal in an interview with CNBC after the company reported earnings last week.

Visa (V) CEO Al Kelly also noted during his company's most recent earnings call that "there's a growing interest in digital currencies."

But he differentiated between assets like bitcoin and so-called stable coins that are backed by existing government currencies. Kelly said that bitcoin and other crytpocurrencies are more like "digital gold."

"They are predominantly held as assets that are not used as a form of payment in a significant way at this point," Kelly said, adding that "fiat-backed digital currencies, including stable coins and central bank digital currencies...are an emerging payments innovation that could have the potential to be used for global commerce."

In other words, Tesla's purchase may lead more companies to consider buying bitcoin, but it's not likely to create a massive groundswell of support just yet.

The biggest wild card


Some are hoping that Apple (AAPL), the world's most valuable company, could be next. Apple could let buyers and sellers trade bitcoin, and also invest directly in the cryptocurency like Tesla is.

RBC analyst Mitch Steves said in a report earlier this month that if Apple decided to set up its own cryptocurrency exchange business (potentially through its Apple Wallet feature) then Apple "could immediately gain market share and disrupt the industry."

Based on how much money Square derives from bitcoin-related revenue, Steves estimates that Apple could eventually generate more than $40 billion in revenue tied to bitcoin.

He also noted that Apple could fund any bitcoin exchange plans by adding about $1 billion to its balance sheet, saying that an Apple purchase of bitcoin would help validate it further and that "the price of the underlying asset would then go up in a substantial manner."

Apple has not publicly discussed any plans to invest in bitcoin and the company did not respond to requests for comment.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Targets South African Professionals in New Recruitment Drive Amid Regional Uncertainty
Formula One Faces Major Financial Hit as Bahrain and Saudi Arabian Grands Prix Cancelled Amid Middle East Conflict
U.S. and Saudi Firms Launch Local Production of Attritable Drone Systems in Saudi Arabia
Saudi Arabia and UAE Warn Rising Gulf Tensions Could Endanger Regional Security
Saudi Arabia Rejects Claims It Encouraged Prolonged War With Iran
Saudi Arabia to Host World’s Largest Single-Cell Protein Plant as Food Security Push Accelerates
Saudi Crown Prince Urges Trump to Continue Military Pressure on Iran
Iran Intensifies Drone Campaign Against Saudi Arabia as Gulf Conflict Escalates
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
Iranian Missile and Drone Strike Targets Saudi Arabia’s Prince Sultan Air Base Hosting US Aircraft
Saudi Air Defenses Intercept Drone Over Eastern Province as Iranian Strike Campaign Intensifies
Middle East War Reshapes Gulf Economies as Saudi Arabia and Oman Gain Strategic Leverage While UAE Faces Economic Shock
Iranian Ambassador in Riyadh Blames ‘Enemies’ for Attacks Across the Gulf
Israeli Envoy Ron Dermer Reportedly Visits Saudi Arabia for Discussions on Potential Lebanon Talks
Formula One Cancels Bahrain and Saudi Arabian Grands Prix Scheduled for April
Iran’s Ambassador in Riyadh Rejects Claims Tehran Targeted Saudi Oil Facilities
Saudi Arabia Declares 2026 ‘Year of Artificial Intelligence’ in Major Push for Data-Driven Economy
Saudi Arabia’s 2018 Budget Signals Strong Push for Non-Oil Economic Growth
Pakistan Envoy in Riyadh Says Regional Diplomacy Intensifying to Prevent Wider Middle East War
Saudi Arabia Intercepts Dozens of Drones as Regional Strikes Kill Two in Oman
Saudi Arabia Redirects Oil Exports to Red Sea Ports as Strait of Hormuz Tensions Escalate
Saudi Arabia Intercepts Missile and Drone Barrage as Regional Conflict Intensifies
Iran Expands Drone and Missile Campaign Across Gulf as Conflict With US and Israel Intensifies
Muslims Worldwide Await Saudi Moon Sighting to Confirm Eid al-Fitr 2026 Date
F1 Calendar Faces Major Disruption as Middle East Conflict Threatens Bahrain and Saudi Races
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Trump Says Most US Aircraft Hit in Saudi Base Attack Suffered Minimal Damage
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Strait of Hormuz Crisis Forces Saudi Arabia Into Major Oil Production Shut-In
Saudi Arabia Slashes Oil Output as Strait of Hormuz Crisis Cuts Deep Into Gulf Revenues
Saudi Arabia’s Cultural Scene Presses Ahead as Nation Navigates Regional War
Saudi-Pakistan Defence Pact Faces Real-World Constraints as Iran War Escalates
Saudi Arabia Offers Two Million Barrels of Crude From Red Sea as War Disrupts Gulf Exports
Formula One Faces Tens of Millions in Lost Revenue if Bahrain and Saudi Arabia Races Are Cancelled
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Middle East War
Saudi Arabia Downs Dozens of Iranian Drones in Major Defensive Operation
Saudi Arabia Cuts Oil Output by About Twenty Percent as Iran War Disrupts Gulf Energy Flows
Formula One Set to Cancel Bahrain and Saudi Arabian Grands Prix Amid Escalating Iran War
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Saudi Arabia Launches Royal Institute of Anthropology to Examine Social Transformation
Pakistan’s Prime Minister Shehbaz Sharif Arrives in Saudi Arabia for High-Level Talks
×