Millions (or less) in Bitcoin and other crypto will now buy you a Ferrari

By Barbara Kollmeyer

"This will help us connect to people who are not necessarily our clients but might afford a Ferrari."Enrico Galliera, chief marketing and commercial officer at Ferrari

Space travel, luxury watches and Starbucks all fall under the category of what consumers can buy with cryptocurrencies these days. Add Italian luxury sports cars to that list, as Ferrari (RACE) (IT:RACE) reportedly is now accepting digital payments for its autos in the U.S., soon to be followed by Europe.

That's according to Enrico Galliera, Ferrari's chief marketing and commercial officer who spoke to Reuters in an interview that published on Saturday. He said his company made the move after receiving requests to allow purchases in cryptocurrencies as some clients had invested in those assets.

"Some are young investors who have built their fortunes around cryptocurrencies. Some others are more traditional investors, who want to diversify their portfolios," he said. A top-selling Ferrari Portofino model retails for just over $250,000, though fans of the fast, flashy cars can spend millions.

He said Ferrari became more open to crypto after seeing the industry work to improve its environmental impact -- Ferrari and its entire value chain is aiming for carbon neutrality by 2030.

The carmaker will accept bitcoin (BTCUSD), ether and stablecoin USDC (USDCUSD), using payment processor BitPay, and Galliera said there will be no fees or surcharges added on. But to protect itself and dealers from the volatile action often seen by cryptocurrencies, payments will immediately be moved over to hard currencies.

Bitcoin has ebbed and flowed with stock markets this year, climbing from around $16,750 in January to nearly $28,000 currently. It reached an all-time high of over $65,000 in November 2021. Bitcoin and other cryptocurrencies were pushing higher on Monday as interest continues to build ahead of anticipated U.S. regulatory approval of a bitcoin exchange traded fund.

As for how many crypto-purchased Ferraris have been sold, Galliera would only say that order books were full into 2025, with crypto allowing the carmaker to broaden out its client base. He said most U.S. dealers were already on board with the new plan.

Ferrari sold 13,221 cars in 2022, up 18.5% from 2021, with 5,958 shipped to Europe Middle East and Africa, followed by its second-biggest region, the U.S., where it sold 3,447 cars.

Tesla (TSLA) caused a stir in March 2021 and boosted bitcoin prices after announcing that the No. 1 digital currency could be used to buy one of its electric vehicles, but Chief Executive Elon Musk pulled the rug on that plan, citing environmental concerns over crypto mining.

MarketWatch has reached out to Ferrari for comment.

-Barbara Kollmeyer

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10-16-23 1032ET

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