Elon Musk is exploring a possible merger that could involve SpaceX, Tesla, or his AI company, xAI. This has drawn attention to a lesser-known aspect of his business empire: their substantial bitcoin holdings. Combined, SpaceX and Tesla own nearly 20,000 bitcoin, valued at about $1.7 billion. This positions them as one of the largest corporate holders of bitcoin, just behind Bullish, which owns 24,300 BTC.
SpaceX started investing in bitcoin back in early 2021. Currently, it holds around 8,285 BTC, worth about $680 million. Tesla, meanwhile, has 11,509 BTC, valued close to $1 billion. Last quarter, Tesla faced a $239 million loss due to bitcoin price fluctuations, as the value dropped from around $114,000 to the high $80,000s.
While any merger discussions remain tentative, they could affect how these companies manage their bitcoin assets. Tesla must report its investments according to market value, meaning that bitcoin price changes influence its earnings every quarter. In contrast, SpaceX, being private, doesn’t have the same pressure for immediate transparency. This difference could be crucial if SpaceX decides to go public, potentially boosting its worth to around $1.5 trillion.
When Tesla initially invested $1.5 billion in bitcoin in early 2021, it sold a portion soon after and later offloaded nearly 75% of its bitcoin holdings during a market downturn in 2022. This inconsistent approach has made investors wary of how Tesla handles cryptocurrencies.
Presently, neither SpaceX nor Tesla has indicated plans to alter their bitcoin positions as they consider the merger. The bitcoin holdings are a small fraction of daily trading. However, how these companies decide to manage their cryptocurrency can influence larger investment trends, especially as discussions about digital assets become more prevalent amid significant shifts in the market.
The evolving landscape of bitcoin in corporate structures reflects a broader trend. Bitcoin’s role as a balance-sheet asset is under renewed scrutiny, especially with gold prices rising and investors generally becoming more cautious. Whether or not SpaceX merges with Tesla or remains independent, the talks underline bitcoin’s growing significance within major tech firms. Even behind the scenes, its presence is enough to keep investor attention firmly focused. For further insights on corporate investment trends, see this market study.
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