The crypto-friendly founder of Ark Investment Management has suggested that Elon Musk may have stopped Tesla accepting Bitcoin payments because of pressure from investors.
Speaking at CoinDesk’s Consensus 2021 conference, Cathie Wood noted that BlackRock is the electric vehicle manufacturer’s third-largest shareholder — and the company currently has a laser-like focus on environmental, social and governance. She said:
“Elon probably got a few calls from institutions … I’m sure BlackRock registered some complaints and perhaps there are some very large holders in Europe who are extremely sensitive to this.”
The Cause of the Crash
Wood, who firmly believes that Bitcoin has the potential to hit $500,000 — even despite the recent drama — also said that Elon Musk and the so-called “ESG movement” were directly responsible for the bearish momentum we’ve seen in recent weeks. Since mid-April, Bitcoin has fallen by more than 40%.
Tesla’s CEO caused a stir when he released a statement declaring that the company would no longer accept the cryptocurrency as a payment method over concerns about the impact that mining, and the blockchain’s Proof-of-Work system, has on the environment. However, Musk did stress that Tesla had no plans to sell its large holding of Bitcoin. He added that he continues to be a strong believer in crypto and would look for more eco-friendly alternatives.
According to Wood, Musk’s move meant that a lot of planned institutional buying ended up being paused indefinitely.