TL;DR Breakdown
- Uber CEO expresses concerns.
- Adyen CEO skeptical about Bitcoin volatility.
- Other Industry CEOs might think different.
The CEO of ride-hailing provider Uber, Dara Khosrowshahi, and CEO of e-commerce firm Adyen, Pieter van der Does, have expressed concern following Tesla’s bold step of investing into the foremost cryptocurrency, Bitcoin.
Both Industry CEOs, who said they were not interested in any Bitcoin investments gave different reasons for this decision when they appeared in a CNBC interview. Uber CEO, Khosrowshahi said that his firm had quickly dismissed the idea of having anything to do with Bitcoin. He said this when quizzed about the possibility of Uber copying Tesla by setting aside a percentage of its investment portfolio for Bitcoin.
The CEO said, “We will keep our cash safe.” He also said, “we are not in speculation business.” He said the company’s upside is the business they have built and not the investments they engage in.
This is despite Uber as a firm reportedly running at a loss compared to Tesla. Reportedly, Uber last recorded a profit in Q1 2018. Data from HyperCharts shows that Uber had only $5.6 billion in cash as of Q4 2020, with negative cash flows recorded for the last three years.
Adyen’s excuse for being against Bitcoin investment
Pieters was the less sentimental of the CEOs. The e-commerce firm’s CEO was concerned about Bitcoin being used as payment owing to its volatility. In the last five days, Bitcoin price has surged by over 20 percent, reaching a new ATH.
“Bitcoin is more of an investment asset than a payment method,” said van der Does. “We are interested in payment methods which are being used […] I am wondering if the huge movement in the value of Bitcoin is helping it as a payment method.”
What other Industry CEOs say about Bitcoin
After Tesla’s Bitcoin investment, several tech industry CEOs have been asked if they would think about adding Bitcoin to their balance sheet. A JPMorgan Chase strategist has argued that the crypto’s high volatility would sway firms from adopting crypto as a store of value.
Twitter CFO Ned Segal has said they would likely begin employee payment with Bitcoin while Max Keiser, a crypto bull, has tipped Oracle Corporation to stake in crypto next. Others have said Apple would be next to have a bite of the industrial crypto cherry.
