European market China is significantly reducing investments

Status: 16.06.2021 12:53 p.m.

China invested less in the European market in 2020 than it has for ten years. Great Britain was particularly hard hit. It’s not just the corona pandemic to blame. China significantly reduced its direct investment in the European market last year. According to a joint report by the American Rhodium Group and Merics in Berlin, direct investments by the People’s Republic in the EU and Great Britain amounted to around 6.5 billion euros in 2020. Compared to the previous year, a decrease of 45 percent. That is the lowest level in ten years.

June 16, 2021

Great minus for Great Britain

In the past year, even 77 percent less Chinese direct investment flowed into Great Britain. Even so, the UK remains one of the top three destinations for China’s investments in Europe – alongside France and Germany at the top. The three most important areas for Chinese investors were infrastructure, information and communication technology and electronics. Poland, promoted by a major acquisition, was a major new recipient last year.

01/14/2021

Stricter controls on Chinese purchases

However, many Chinese purchases are now being scrutinized more closely by the EU member states than in the past. Several planned takeovers did not materialize. In Germany, for example, the Federal Ministry of Economics stopped the planned sale of the radar specialist IMST from North Rhine-Westphalia to a Chinese company with links to the military. Several EU countries, including Italy, France, Poland and Hungary, had tightened their inspection mechanisms for direct investments from third countries last year. Investments continued to decline in the current year, according to the report. The reasons are the pandemic, high hurdles for capital outflows from China and tighter controls in the EU.

10/01/2019

Sanctions dispute exacerbates tensions

In addition, the tense relations between China and the EU are likely to play a role. That’s the way it is Investment protection agreements agreed in December between the EU and the People’s Republic is currently on hold and ratification by the European Parliament seems to be moving further and further into the distance. Another point of contention remains the human rights violations in China: In March, the EU Sanctions imposed on Chinese politicians and an organization for the first time in 30 years . The EU accuses China of violating human rights by suppressing the Uyghur Muslim minority in the Xinjiang region. As a result of the European punitive measures, China also reacted shortly thereafter with sanctions against European institutions and several EU politicians . With information from Ruth Kirchner, ARD Studio Beijing, currently Berlin

Produced | Sohu Technology

Author | Yin Lina

In the morning of June 9, Youxian submitted its prospectus every day, formally sprinting for the IPO of US stocks.

The Daily Fresh Food Plan uses “MF” (abbreviation of the English name MissFresh) as the stock code and is listed on the Nasdaq. The tentative maximum fundraising amount is 100 million US dollars, and it launches an impact on the “first share of fresh food e-commerce” .

Daily Youxian is an old player in the “fresh food e-commerce” track. Because of the extremely high loss rate of this track, but it can also harvest huge traffic. Therefore, in the 6 and a half years of its establishment, Daily Youxian has witnessed the fall of many opponents and ushered in batch after batch of new ones. Players, and at the same time, need successive financing to replenish “ammunition.”

Nowadays, the competition in the “vegetable selling” business has become fierce. Internet giants such as Meituan Optimal, Orange Heart Optimal (under Didi), and Duoduo Maicai (under Pinduoduo) have entered the community group buying, and there are also from Dingdong Maicai and Meituan The opponents of buying food equivalent to the “pre-warehouse + delivery model” are developing rapidly. After the tide of bankruptcy of fresh food e-commerce, the track has become hot again. For Daily Fresh Food, this is a good thing, but it is also a challenge.

Performance dismantling: losses have narrowed significantly, and performance costs accounted for about 1/4 of revenue

From the performance point of view, from 2018 to 2020, the daily revenue of Youxian was 3.55 billion yuan, 6.0 billion yuan and 6.13 billion yuan.

2019 is a year of rapid development of Daily Fresh Food. This is not difficult to see in the “69% year-on-year increase in revenue”.

This is a year of daily excellence and freshness. One example is the large investment in technology and content. For the whole year of 2019, the daily cost of Youxian on technology and content was close to 4.7 billion, an increase of more than 100% compared to the previous year. At the same time, with the expansion of business scale, Daily Youxian has also increased its costs, performance costs, and administrative expenses, but has decreased marketing expenses.

Entering 2020, with more and more players pouring into the fresh food e-commerce track, the daily revenue of Fresh Fresh has only gained a small increase, from 6.0 billion to 6.13 billion. However, compared to the opponent’s strategy of trading losses for growth, Daily Youxian’s losses have significantly narrowed in 2020. The net loss has dropped sharply from 2.91 billion yuan in 2019 to 1.65 billion yuan in 2020, a drop of up to 43.3%.

In terms of cost control, Daily Youxian’s gross profit margin has increased from 8.6% in 2018 to 19.4% in 2020. Specifically, in the case of basically flat revenue, the daily operating costs of fresh fresh products have dropped by about 10%, and direct sourcing of commodities may be the main reason for the decrease in costs. Last year, Liu Zhidan, vice president of Daily Fresh Food and head of the Commodity Center, once said that the proportion of direct sourcing of commodities is close to 80% of the target, and that direct sourcing can further reduce costs by more than 10% compared to land sourcing.

In addition, Daily Fresh Food has also reduced various expenses to a greater extent. Among them, performance expenses fell by 14% year-on-year, marketing expenses fell by 20% year-on-year, and administrative expenses fell by 21%, all of which are manifestations of improved operational efficiency.

Among the various expenses, the daily excellent fresh flowers has the highest proportion of the cost of contract performance. From 2018 to 2020, daily Youxian’s performance costs were 1.24 billion yuan, 1.83 billion yuan, and 1.58 billion yuan, accounting for 34.9%, 30.5%, and 25.7% of the company’s current operating income, respectively, a significant decrease.

Since Daily Youxian launched the heavy asset model of pre-warehouses, discussions on performance costs in business analysis have been heated. Since the initial investment has become an established fact, how to increase the customer unit price to cover the cost has become a key concern of Daily Fresh. As of now, the daily average customer unit price of fresh pre-warehouse real-time retail is 94.6 yuan. According to its prospectus, this is currently the company with the highest unit price under the pre-warehouse model.

However, in the field of “selling vegetables”, compared with the previous high-investment pre-warehouse model, the current capital’s most favored model is the light asset model of community group buying, which is an appointment order + self-request. In this track, there are also Internet giants such as Meituan, Pinduoduo, Didi, and JD.com.

From a geographical point of view, the competition between Daily Fresh and the current popular community group buying is not a head-to-head competition.

Daily Youxian’s main battlefields are distributed in four regions: North China, Central China, South China, and East China. They are mainly first-tier or new-tier cities. Cities such as Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou are involved. Among them, North China is a key area, and only Beijing City The number of front positions has reached 1/5 of the total.

As for community group buying, as of the end of last year, Didi’s community group buying companies such as Orange Heart, Meituan, Duoduomai, Xingshengyou are still developing in second-tier cities, such as the Hunan and Hubei provinces in central China and the southwestern region. Mainly in Sichuan. However, after nearly half a year of development, as of the end of March this year, Meituan Optimal has stationed in more than 2,600 cities and counties across the country, basically completing national coverage. According to data from Everbright Securities, in April this year, Duoduo’s business coverage has covered about 1,800 counties.

Compared with the rapid expansion of community group buying, Daily Youxian appears to be more cautious in Kaicheng, but it also avoids the problem of further expansion of losses. As of March 31, 2021, Daily Youxian has established 631 front-end warehouses in 16 cities in China, and has accumulated more than 31 million trading users.

Financing story: Xu Zheng and his “100 billion” goal

Compared with the boring research on revenue, contract performance, and supply chain, the daily financing story of Youxian is more interesting.

Behind this fast-growing company is Xu Zheng, who was recommended to the University of Science and Technology of China at the age of 15, and became the youngest general manager of Lenovo’s business department in China at the age of 28. In the 30th year of his establishment, he took the initiative to ask Ying to transfer to Jiawo, abandoning the seemingly high-end business of “selling computers” and moving to the field to study “selling fruits”. Three years later, in 2014, he founded Daily Youxian.

According to incomplete statistics, Daily Youxian has completed 10 rounds of financing, with a cumulative total of more than 11 billion yuan. In the second half of last year alone, Daily Youxian completed two rounds of financing with a total of more than 5 billion yuan. And its investors are also from top VCs, well-known companies and local governments.

Among them, Tencent has invested in 5 consecutive rounds, and Xu Zheng’s old club Lenovo has also participated in the C round of investment. In terms of capital, Daily Youxian’s shareholders include ICBC International, CICC Capital, and Goldman Sachs. At the same time, state-owned assets such as Suzhou Changshu Government Industrial Fund, Qingdao Guoxin, Qingdao Municipal Government Guidance Fund and other local government funds also appeared on the list of investors.

Despite this, Daily Youxian has also encountered the darkest moments in its development. In the most difficult moment of financing, Xu Zheng used all of his real estate mortgage loans to prepare for the company to invest all of his belongings.

Look at the shareholder structure of Daily Youxian. In the management, Xu Zheng, the founder and CEO of Daily Youxian, holds 15.3% of the shares and has 74.1% of the voting rights. In addition, the company’s CFO Wang Jun owns 2.2% of the shares and owns 0.7% of the voting rights; the company’s COO Sun Yuan owns 1.3% of the shares and 0.4% of the voting rights.The directors and the company’s management hold a total of 20.2% of the shares and 75.6% of the voting rights

Among the external shareholders, Xiamen Daily Youxian Equity Investment Partnership (Limited Partnership), with a Qingdao state-owned background, holds the highest share of 8.7%, with 2.7% of the voting rights. According to the total investment of 2 billion yuan in Qingdao’s state-owned assets, as of December last year, the daily valuation of Youxian was around 23 billion yuan.

In addition, Image Frame Investment of Tencent Holdings holds 8.1% of the shares and 2.5% of the voting rights. Genesis Capital holds 7.2% of the shares and has 2.2% of the voting rights. In addition, Zeng Bin, the other founder of Daily Youxian, holds 5.5% of the shares and 0.3% of the voting rights.

The number of “hundred billions” is constantly mentioned in the financing stories of various stages and different versions of Youxian Daily.

In June 2019, Daily Youxian and Tencent jointly held a huge smart retail conference. It was at this press conference that Xu Zheng proposed for the first time the goal of growing into a “hundred billion” scale fresh food retail platform.

Daily Youxian’s latest financing occurred on December 9th last year, and it is also the largest strategic investment of fresh food e-commerce in the local area so far, with a total amount of 2 billion yuan. In this financing conference from the Qingdao government, the perspective of Daily Fresh Food is not limited to the “100 billion” track of “selling vegetables”, but involves the four “100 billion” of ecological chain, finance and technology.

Among them, the ecological chain is mainly undertaken by Sansheng Venture Capital, a fund of Daily Fresh Food, which mainly includes the five aspects of the upstream vegetable industry, dairy industry, fruit industry, fishery and meat industry. Guo Qi, the founding partner of Sansheng Ventures, is also the vice president of Daily Youxian. In his opinion, the cultivation, breeding, and processing of agricultural products are actually extended to deep processing and high added value, from agriculture to industrial products. Conversion.

Finance is mainly for farmers, channel merchants, merchants, and users, including four types of entities, including agricultural insurance for farmers, futures trading for channel merchants, supply chain finance for merchants, and consumer credit to users. The first step is to adopt a weekly settlement policy with the head supplier. In the field of science and technology, it mainly includes biotechnology and AI technology. Among them, biotechnology mainly involves the improvement of varieties, while empowering traditional industries.

However, these stories are far from being realized on the eve of listing. At the beginning of the prospectus, Daily Youxian proposed the formula (A+B)*N. A stands for real-time retail in the front-storage mode, B stands for smart food market, and N stands for retail cloud.

Previously, Daily Youxian has developed an end-to-end intelligent system based on a large amount of data accumulation and algorithm optimization-Smart Retail Network (RAIN), covering core areas such as smart supply chain, smart logistics, and smart marketing. Smart food market and retail cloud are new business formats for the B-end extended on this basis.

According to the prospectus, in the practice of smart vegetable market, Daily Youxian will first obtain the right to operate the vegetable market, then renovate the layout of the venue, optimize the combination of merchants and introduce new business formats; at the same time, provide merchants with electronic payment, online marketing, and CRM tools. SaaS service package including business planning; finally, help merchants of smart food market convert offline customers into online private domain traffic, and realize further increase in e-commerce business revenue through online trading platforms.

Up to now, Daily Youxian has signed operating agreements with 54 vegetable markets in 14 cities, and has started operations in 33 vegetable markets in 10 cities.

In the retail cloud business, Daily Youxian will target long-tail small and medium-sized supermarkets as its target customers, providing online and offline omni-channel retail, customer management, supply chain and performance management digital capabilities, and to achieve vertical e-commerce The development path towards platform.

The first-hand vegetable market and the other-hand supermarket, Daily Youxian has set its sights on the wider retail entrance.

But the story is also just a story. Today, Daily Youxian has turned the story of the pre-storage into reality, but Daily Youxian now has to face more capital influx into the track, and more experienced and well-executed companies as its opponents. .

In Xu Zheng’s prediction, the end result of the fresh food market will be the coexistence of multiple oligarchs at the level of hundreds of billions. For Daily Youxian, who is entering the next stage, it may be re-adjusting the fighting posture.

Edit | Sun Ming

With the upsurge of cross-border “car building” by major industry giants, the past of Wuliangye cross-border car building seems to have been forgotten by the industry. Three years ago, Wuliangye invested nearly 2.5 billion yuan to take a 51% stake in Kaiyi Automobile, and announced a 3.7 billion yuan investment in a smart car factory. However, from the perspective of market performance, the projects that have been heavily invested have not been recognized by consumers.

“We are selling Geely, not Kaiyi. These are two car companies and two brands.”

“Kaiyi hasn’t been bought for a long time. If you consider Xuanjie, you can take a look at the Tiggo 5X. The two cars are basically the same.”

On the 15th, AI Finance and Economics found two dealers in the Yangtze River Delta and Beijing-Tianjin-Hebei on the official website of Kaiyi Automobile, and asked whether they could buy the Kaiyi X3, and the other party responded as above.

Kaiyi Auto and Baoneng Auto have the same door, and both come from Chery Automobile, the former boss of independent brand auto companies. Under the drag of its diversified brand strategy, Chery has gradually fallen into the pit of losses for years. In 2017, Chery sold the Qoros car with a huge loss of 8 billion at a price of 6.5 billion. The following year, Yibin Capital, backed by Wuliangye, took over 51% of the equity of Kaiyi Auto with 2.494 billion yuan. When the trend of cross-border car building was getting stronger, it opened a prelude to the story of “drinking” and “driving”. However, the reality is not. It’s not as good as expected.

Planning for more than ten years, monthly sales of 600 units

Unlike Dong Mingzhu and Lei Jun, Wuliangye has been trying to build a car for a long time. In 2003, “Push”, a wholly-owned subsidiary of Wuliangye that produced supporting molds, began to produce automobile molds for Changan Automobile and a Japanese car company. Two years later, Push invested another 300 million yuan in Chongqing to produce automobile machinery molds and engines. Parts.

As an important piece of Wuliangye Group’s entry into the automotive market, Push Group is not content to act as a mold supplier. First, it invested in automotive engines in 2006 and purchased a 46.5% stake in Xinhua Internal Combustion Engine Group, a subsidiary of Brilliance. In 2009, it established Brilliance Mianyang as a joint venture with Brilliance and obtained the qualification for vehicle production.

The good times didn’t last long. In 2011, after the new chairman Tang Qiao took over Wang Guochun, he listed and transferred Xinhua Internal Combustion, which had been losing money for many years. Since then, Wuliangye bid farewell to automobile engines and the car manufacturing business has temporarily come to an end. But the new people and new policies. After Li Shuguang took over as the chairman of Wuliangye Group in 2017, Wuliangye announced that it would spend 2.494 billion yuan to buy 51% of Chery’s Kaiyi Automobile, and spend 3.7 billion yuan to build the Kaiyi Yibin Smart Factory.

Kaiyi, which was acquired by Wuliangye, has not been able to open the market since its birth. In the early days of its establishment in 2014, Chery packaged Kaiyi as a “crowd-sourcing car building” under the thinking of the Internet, which once attracted great attention. However, the actual sales volume in 2015 was only 24,000, 37,000 in 2016, and 41,000 in 2017, which is far from expectations.

With the blessing of leading liquor companies, Kaiyi’s annual sales volume declined instead of rising, falling to 24,000 units in 2018 and 27,000 units in 2019. In mid-2020, Kaiyi released Wuliangye’s first new car to show off the world, which is very similar to Chery Tiggo 5X. Some evaluations directly pointed out that the body proportions, waistline, and front and rear suspension lengths of Xuanjie and Tiggo 5X are almost identical, and the power system and interior configuration are also very similar.

The new model of Kaiyi will have a total sales of 33,000 units in 2020, an increase of 5,000 units year-on-year. Among them, the sales volume of Xuanjie was 21,779, and several other models all declined. Entering 2021, the monthly sales volume of Xuanjie has dropped to 1,060 units in January, and again to 634 units in February.

Although the monthly sales volume of the first car has fallen to 100 units, Kaiyi is still planning new products. Not long ago, the Kaiyi Xuandu declaration drawing was exposed. According to the data, Xuandu will be equipped with a 1498ml engine with a maximum power of 115kW. An industry insider pointed out to AI Finance and Economics that considering the current models of Kaiyi Automobile Configuration and parameter performance, this engine is expected to be the 1.5T of the Kaiyi X3.

“If the situation is true, it may be difficult for new products to achieve breakthroughs in product strength,” the person pointed out, “Except for the low-end price advantage of Kaiyi, there is not much improvement in branding, design, R&D, and marketing.”

“Drunkard” does not mean wine

As an A-share wine company that sits in the Shanghai and Shenzhen stock markets with Maotai, Wuliangye was once the top wine maker. In 2001, its revenue reached 4.742 billion yuan, almost three times that of Moutai during the same period (Moutai: 1.618 billion yuan). At that time, although the two heroes of baijiu were the best in terms of fame, Wuliangye was obviously better in terms of performance.

During the years when the champion jersey was added, Wuliangye gradually “expanded”, extending its capital tentacles to almost every inch of sight. In addition to the cars mentioned above, Wuliangye has also invested in CNC machine tools, real estate, hotels, plastics, medicine, import and export, environmental protection, daily chemicals, paper making, chips… But things are counterproductive, dozens of wholly-owned or controlling subsidiaries Very few companies generate revenue.

In addition to the diversified business that ended awkwardly, OEM liquor also consumed Wuliangye’s brand value. In 2006, according to statistics from an organization, Wuliangye owns more than 100 wine brands, whose prices are mainly between 30-80 yuan, and that 80% of the brand’s turnover accounts for only one-tenth of the total turnover of Wuliangye Winery.

Wuliangye, distracted from its main business, was finally overtaken by Moutai in 2008 in terms of revenue. In the following four years, although Wuliangye has turned the tide and returned to the throne of “revenue first”, the return on net assets has fallen sharply. Data show that in 2010, Wuliangye’s return on net assets was 16.996%, and Maotai was 39.677%. In 2012, Kweichow Moutai’s revenue was only a few hundred million yuan behind Wuliangye, but its net profit exceeded the latter by more than 3 billion yuan.

In 2013, the liquor industry ushered in an inflection point. Many high-end liquor companies, including Wuliangye and Shuijingfang, suffered heavy losses, but Moutai bucked the trend. From 2012 to 2014, Wuliangye’s revenue was 27.201 billion yuan, 24.719 billion yuan, and 21.011 billion yuan. Net profit attributable to its mother was 9.935 billion yuan, 7.973 billion yuan, and 5.835 billion yuan; Shuijingfang’s operating income was 1.636 billion yuan, respectively. 486 million yuan, 365 million yuan, net profit attributable to the parent of 338 million yuan, -154 million yuan, -418 million yuan. The operating income of Kweichow Moutai was RMB 26.455 billion, RMB 30.922 billion, and RMB 31.574 billion, and net profits attributable to the parent were RMB 13.308 billion, RMB 15.137 billion, and RMB 15.350 billion.

Image source: AI Finance and Economics

An industry insider who loves liquor told AI Finance and Economics that the reshuffle brought about by industry adjustments is the cause. The internal cause of Moutai’s growth against the trend is the scarcity of products and the financial attributes based on scarcity value. “Under the high-end positioning, The price difference between the market price and the ex-factory price protects Moutai’s profitability.”

Wuliangye, who was defeated, began to imitate Moutai’s high-end pace. The eighth generation of Wuliangye will be launched in 2019, and the strategic product “Super High-end 501” will be launched. In addition to the limited sale of 501 bottles each year, Wuliangye also claims to be the “Pearl in the Crown” in the advertisement. However, this has not reversed Wuliangye’s overall performance. The financial report shows that in 2019, Wuliangye’s annual revenue was 50.118 billion yuan, fulfilling the 50 billion yuan revenue target, but its sales volume was 165,100 tons, a year-on-year decrease of 13.67%, and its inventory was 15,800 tons, a year-on-year decrease. An increase of 22.06%. This means that Wuliangye, who wants to replicate Moutai’s high-end road, has fallen into a difficult situation.

In 2020, the liquor industry collectively broke out in the capital market. Kweichow Moutai once exceeded 3 trillion yuan, and currently ranks first with a market value of about 2.5 trillion yuan. Although Wuliangye is the second runner-up, its market value is only 1.1 trillion yuan, which is not as good as Maotai. half. The ambitions of the former leader come again, but the arena is no longer.

This article was originally produced by AI Finance and Economics, an account of “Finance World” Weekly. Please do not reprint it on any channel or platform without permission. Offenders must be investigated.

In the 2008 financial crisis, in order to boost the country’s economy, the United States passed the crisis on to other countries through quantitative easing (QE) and reduction. Today, the United States is repeating its old tricks. After announcing unlimited “money printing,” the United States has released new signals within a day.

In the early morning of Thursday (April 15), Beijing time, Fed Powell stated in a speech at the Washington Economic Club that the US economy is at an “inflection point” of accelerating growth and hopes that the inflation rate will be moderately higher than 2% for a period of time. To the market’s surprise, he also said that before raising interest rates, the Fed will gradually reduce the scale of bond purchases (cutting QE).

Powell said that the time to reduce QE may be much earlier than the time when the Fed considers raising interest rates . He also said that although the Fed has not yet voted on this, it is a guideline. For the current market, this is undoubtedly a “blockbuster”, because any discussion about reducing QE now will cause a high degree of market tension.

At the time when the Fed’s wind direction is changing, the Chinese central bank seems to be going the other way. China’s latest announcement on Thursday shows that on April 15, 2021, the central bank will carry out 150 billion yuan of medium-term lending facilities (MLF, commonly known as “spicy powder”) operations (including the expiration of MLF on April 15 and TMLF on April 25). Continued), in addition, a 10 billion yuan reverse repurchase operation was also carried out.

As there are 10 billion yuan of reverse repurchase and 100 billion yuan of MLF due today, China’s daily operations, from a full-scale perspective, have achieved a net investment of 50 billion yuan. What does this mean? In fact, both reverse repurchase and MLF are essentially tools for the central bank to provide liquidity to the market.

Therefore, the goal of this action is actually to maintain a reasonable abundance of liquidity in the banking system. In fact, it has been stated before that the current currency adjustment of the Federal Reserve has little impact on China. Judging from the actions in the day, the toolbox of the Central Bank of China is still very sufficient.

Text | Questions by Lu Shuoyi | Figures by Zeng Yunzi | Wenxiang Lu | Lu Shuoyi

A source told Mirror that: “The crew of the film thinks they can hold their biggest live premiere since the outbreak of Covid-19 worldwide. The event was spent £ 10 million – signaling number. that the film industry is about to return after being ravaged by the epidemic “. Current source added, crew No Time to Die are looking for venue in London. In addition, the filmmakers are also considering the Staples Center in Los Angeles for the premiere in the US. No Time to Die is a slow-exploding bomb with the financial situation of MGM. This person confirmed that MGM never wanted their blockbuster to be released online, without the red carpet. This is the reason why the film had to delay its release for a quite long time. According to the script, the blockbuster will be released in April 2021. However, in early 2021, No time to die officially delayed for the third time. After that, the crew stated that the movie’s expected theatrical release date is October 8, 2021. No Time to Die was a slow-exploding bomb with MGM’s finances. The studio is determined to keep the plan to release the work outside of theaters worldwide, with the hope that the film that marked Daniel Craig’s last time as James Bond will bring in huge profits.

Digital currencies are often accompanied by many uncertain and unstable factors.

text:

Some people think that Bitcoin is a huge scam. Although the current price is scary and the returns are high, when reality bursts the bubble, Bitcoin will be worthless, and the collapse of the building will follow. .

Therefore, when Tesla decided to invest in Bitcoin at the beginning of this year, it was questioned by the outside world, but the company insiders also expressed concern.

But Tesla’s CEO Elon Musk has never played the cards according to common sense. He said that his decision was not for investment purposes, but to maximize the return of cash. At that time, Musk decided to invest in Bitcoin and at the same time announced that the United States will support the use of Bitcoin to purchase all Tesla models. In the future, it may also be possible to promote the Bitcoin payment method globally.

At present, whether it is for investment purposes or not, Musk is not earning less.

When Tesla decided to invest USD 1.5 billion in Bitcoin in January this year, the price of each Bitcoin was between USD 29,000 and USD 37,000. Now, just three months have passed, and the current Bitcoin price has broken through. 60,000 US dollars each. Even if Musk bought Bitcoin at the highest price of USD 37,000 each, USD 1.5 billion has now become USD 2.3 billion. In other words, in just three months, Musk relied solely on Bitcoin. The investment has made a net profit of 800 million US dollars. If you buy 1.5 billion US dollars of Bitcoin at the lowest price of 290 million US dollars at the time, the current market value will exceed 2.8 billion US dollars, which means that the income will be as high as 1.3 billion US dollars, and the income will almost double. I have to say that the speed of making money is really no one.

Throughout 2020, Tesla’s car-building revenue was US$721 million. In other words, after working hard on research and development, Master’s Tesla’s revenue for a whole year is not as good as investing in Bitcoin for 3 months at home. Earn a lot of money.

This series of Bitcoin’s surge is not unrelated to Musk’s own marketing. It is precisely because of his investment in Bitcoin. He often supports and shouts for Bitcoin on various occasions. He believes that Bitcoin is the people’s , Is of the world.

But in fact, such a blind cry is mixed with many of Musk’s personal interests. The danger of virtual currency is always present. Some people may think that so many people are making money on Bitcoin, and so many giants recognize that Bitcoin must have it. However, it always exists virtually and cannot be stored stably. Once credit problems occur in the United States, at least investors in other countries must be the first to suffer.

Coinbase, the largest bitcoin trading platform in the United States and other digital currency trading platforms, landed on Nasdaq, which also made bitcoin prices hit a new high. Throughout 2020, Coinbase’s revenue was US$1.277 billion, and its profit was US$322 million. In the first quarter of this year, Coinbase’s revenue was US$1.8 billion, an 8 times increase over the same period last year, and its net profit soared 25 times. It is reported that Coinbase may surpass UBER and ABNB to become the largest unicorn company. By then, digital currency will become one of the industries with the highest return in recent years.