This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Finding itself among the many tokens that are rising today, The Sandbox (CRYPTO: SAND), a popular metaverse cryptocurrency, is also soaring today. But why are investors so eager to scoop up this token in particular? Apparently, the company is looking to raise funds, so investors may be speculating that the company has growth plans on the horizon.

As of 1:50 p.m. ET, The Sandbox's token has risen 9.3% over the previous 24-hour period.

So what

According to Bloomberg, The Sandbox, whose majority owner is blockchain game developer Animoca Brands, is interested in raising $400 million from current as well as new investors at a valuation of $4 billion. At the moment, The Sandbox has a market cap -- the market value of its circulating supply -- of $3.35 billion. 

Citing people familiar with the matter, Bloomberg is reporting that the size of the funding and the valuation are both flexible, predicated on market sentiment and investor demand. The company didn't respond to a request for comment.

Previously, The Sandbox had raised $93 million in Series B funding from SoftBank in November. In the related press release, The Sandbox stated that the funds it had raised would be used to:

[S]cale the platform's growth as a prime entertainment destination where brands, IPs, and celebrities can engage with their fans through virtual experiences, including games, live performances, and social experiences.

Presumably, the funding that it's currently seeking will be used for similar purposes. 

Now what

Among the companies seeking to flourish in the metaverse, The Sandbox is one of the more familiar names and its early foray into the space will likely prove advantageous as others are seeking to gain ground. For crypto-curious investors, this name is one to watch closely.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why The Sandbox cryptocurrency is soaring today appeared first on The Motley Fool Australia.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

According to Elon Musk, the time for Tesla Inc (NASDAQ: TSLA) to focus on profits has arrived. In a recently written email that was obtained by the EV news website, Electrek, Musk warned the company's employees that if Tesla's bottom-line doesn't reflect significant growth -- meeting the market's expectations -- investors will likely pump the brakes and send the stock plummeting.

In the email, Musk states:

When looking at our actual profitability, it is very low at around 1% for the past year. Investors are giving us a lot of credit for future profits, but if, at any point, they conclude that's not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!

In addition, Musk pointed to the necessity of finding new ways to save money in manufacturing. Also from the email, Musk says, "[I]n order to make our cars affordable, we have to get smarter about how we spend money...A great idea would be one that saves $5, but the vast majority are 50 cents here or 20 cents there."

While the company has never reported positive net income on an annual basis, shares have skyrocketed approximately 1,160% over the past five years as investors drove up the stock on the belief that profits would come at some point down the road. Although Tesla reported its fifth consecutive quarter of profitability in Q3 2020, Musk appears to sense that shareholders are yearning for more.

Profits, undoubtedly, are important, but investors should also appreciate the company's growing cash flow. For the first time in the past decade, Tesla generated free cash flow on an annual basis, about 3.9% of revenue for fiscal 2019, according to Morningstar. On a trailing-twelve-month basis, this metric has accelerated to 6.5%.

Considering Musk's ample incentive package revealed in the spring, there should be little surprised that he's so concerned with Tesla's stock price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Elon Musk wants to steer Tesla towards higher profits appeared first on The Motley Fool Australia.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.