- Tesla CEO Elon Musk is wading back into the cryptocurrency fray, while ARK Investment Management CEO Cathie Wood is sticking to her bullish Bitcoin thesis.
- Using emojis, Musk tweets that Tesla has diamond hands, a term very popular among Reddit's (REDDIT) WallStreetBets community to refer to someone adamant in holding a position.
- The tweet could refer to Tesla's $1.5B in Bitcoin holdings.
- Musk roiled markets over the weekend with a Twitter war with crypto fans where one reply led people to believe that his company would liquidate its Bitcoin position. He later clarified that the company had not sold any.
- Meanwhile, at a Bloomberg Businessweek event, Cathie Wood says she still thinks Bitcoin will go to $500K.
- “I think we are in a risk off period for all assets," Wood said. "The correlation of volatile assets are going to 1 right now, including Bitcoin. We go through soul searching times like this but our conviction on Bitcoin remains high."
- She also weighed in on Musk's Bitcoin battle, according to a tweet from Bloomberg analyst Eric Balchunas.
- "I believe what happened is after he took position in Bitcoin he got pushback from (institutional) shareholders like BlackRock. You've got Larry Fink beating (the) drum on climate change. I don’t think he expected that. But I think he’ll come back to the mix.”
- Wood's team, who has Tesla as the top holding of her flagship ARK Innovation ETF, disagreed with Musk's concerns about the environment impact of Bitcoin mining, saying it would be a net positive for the environment.
- She is also doubling down on her bet on Coinbase.
- Bitcoin (BTC-USD) -14% is off its lows, now back above $35K. Coinbase (NASDAQ:COIN) -6% is down amid the crypto selloff and an outage.
- ARK Innovation (NYSEARCA:ARKK) -2% is lower. And Tesla (NASDAQ:TSLA) -4% is leading EV stocks lower.