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Ark Breaks with Elon Musk on Bitcoin, Describing Tesla's U-Turn as "Misguided"

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Mon, 05/17/2021 - 17:55
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Alex Dovbnya
Ark Investment has eventually commented on the Elon Musk imbroglio
Ark Breaks with Elon Musk on Bitcoin, Describing Tesla's U-Turn as "Misguided"
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Ark Investment Management’s analyst Yassine Elmandjra claims that Tesla’s concerns about Bitcoin’s energy consumption are “misguided,” undercutting CEO Elon Musk who criticized the cryptocurrency’s carbon footprint last week.

Elmandjra writes that mining can be actually net positive for the environment:       

In our view, the concerns around Bitcoin’s energy consumption are misguided. Contrary to consensus thinking, we believe the impact of bitcoin mining could become a net positive to the environment.

Musk triggered a massive market correction after announcing that Tesla was no longer accepting Bitcoin on May 12, with his most recent tweets adding more fuel to the fire.       

As reported by U.Today, Greenidge, a Bitcoin mining power plant that seemingly influenced Tesla’s decision, announced that would be completely carbon-neutral starting from June.

In his note, Elmandjra points to Ark and Square's joint white paper about green Bitcoin mining, which notably got a nod of approval from Musk.

Related
Bitcoin's Implied Volatility Reaches 2021 Peak Amid Elon Musk Drama

Tesla on the ropes  

The Tesla stock has so far dropped by 4 percent today, nearing a multi-month low.

The shares of the e-car manufacturer comprise over 10 percent of Cathie Wood's flagship ARK Innovation ETF.

Wood—whose timely bet on Tesla has propelled her rise to stardom—is also a vocal Bitcoin proponent.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.