SpaceX’s Bitcoin Stash Surges Past $1B Milestone as BTC Shatters All-Time High

Elon Musk's space empire just joined the crypto billionaires' club—the hard way.

When Bitcoin punched through its previous record this week, SpaceX's cold wallets got a gravity-defying boost. The aerospace giant now holds over $1 billion in BTC, making it one of the largest corporate HODLers on Earth (and presumably off-planet too).

Not bad for a 'side bet'—though Wall Street analysts will surely dismiss it as another distraction from fundamentals. Because nothing says 'serious investment' like parking company reserves in an asset that swings 20% before lunch.

SpaceX’s Bitcoin Journey

While SpaceX’s holdings are back above the billion-dollar threshold, this is not the first time the company’s bitcoin portfolio has reached such heights. Records traceable to early 2021 show that the company once held as much as 28,000 BTC. At its peak in April 2021, those holdings were valued at around $1.8 billion, marking a significant early commitment to the digital asset.

However, that position was drastically reduced in mid-2022. Arkham’s data suggests that SpaceX sold about 70% of its bitcoin holdings during a turbulent period for the crypto industry. That year was marked by several high-profile collapses, including the Terra-Luna ecosystem in May, the implosion of crypto exchange FTX in November, and a wave of insolvencies that shook investor confidence.

Since trimming its holdings to the current level, SpaceX has not made additional bitcoin purchases, according to the available blockchain tracking data.

Tesla’s Similar Moves

SpaceX’s reduction in bitcoin exposure in 2022 mirrors moves made by Tesla, another Musk-led company. Tesla also sold off a large portion of its bitcoin holdings during the same year and now holds 11,509 BTC. Based on current market prices, that stake is valued at approximately $1.42 billion.

Tesla’s initial bitcoin investment in early 2021 was one of the first major endorsements of the cryptocurrency by a publicly traded company, helping fuel a wave of corporate interest in digital assets. While both Tesla and SpaceX have reduced their positions since the highs of 2021, their combined holdings still represent a multi-billion-dollar exposure to bitcoin.

Bitcoin’s Record-Breaking Rally

The latest valuation milestone for SpaceX comes as bitcoin continues to demonstrate remarkable strength in the market. On Wednesday, the cryptocurrency surged past its July all-time high, reaching levels above $124,300 before slightly retreating. At the time of writing, bitcoin is trading NEAR $123,117, marking a 3.17% increase over the past 24 hours.

This rally has propelled bitcoin into the ranks of the world’s most valuable assets. With a market capitalization of $2.452 trillion, bitcoin now ranks as the fifth-largest asset globally, overtaking Google, which has a market cap of $2.448 trillion.

The rally has not been limited to bitcoin. Ether and other major cryptocurrencies have also seen substantial gains, suggesting broad-based Optimism across the digital asset sector.

Macro Factors Driving the Surge

Market analysts point to macroeconomic developments as a significant driver behind the latest upswing in cryptocurrency prices. Investors are increasingly anticipating a possible U.S. interest rate cut in September, following economic data that showed inflation holding steady rather than ticking higher.

Paul Howard, senior director at crypto market maker Wincent, explained that expectations had been for the July Consumer Price Index (CPI) to rise slightly to 2.8% from June’s 2.7%. Instead, the figure remained unchanged despite ongoing inflationary pressures from tariffs.

“This outcome is bullish for BTC and ETH, as it increases the likelihood of a potential U.S. rate adjustment,” Howard said. Lower interest rates typically reduce the appeal of traditional fixed-income investments, pushing investors toward alternative assets such as bitcoin.

Institutional and Corporate Influence

SpaceX’s bitcoin holdings highlight the continuing role of institutional and corporate participation in the cryptocurrency market. Even after selling a large portion of its original holdings, the company’s remaining BTC represents a significant amount of capital tied to the asset.

Corporate holdings of bitcoin can have a considerable influence on market sentiment. Large institutional positions are often interpreted as a sign of long-term confidence in the cryptocurrency’s value, even if companies adjust their exposure during volatile periods.

Moreover, Elon Musk’s history of engaging with the crypto community—whether through Tesla’s initial bitcoin purchase, SpaceX’s holdings, or his public commentary—has kept both companies in the spotlight whenever digital assets make headlines.

The Bigger Picture

Bitcoin’s climb to new all-time highs marks a major milestone for the cryptocurrency, which has navigated multiple boom-and-bust cycles since its inception. Each new peak brings fresh debate about whether the asset’s valuation is sustainable or a sign of another speculative bubble.

For SpaceX, the rising value of its bitcoin holdings is likely a secondary consideration compared to its primary aerospace mission. Still, the billion-dollar mark is symbolic, showing how even a reduced bitcoin position can generate significant value during a bull market.

The broader implication is clear: companies that maintain some level of cryptocurrency exposure, even after reducing their positions, can see rapid appreciation when market conditions turn favorable. As bitcoin gains traction among retail investors, institutions, and corporations, its influence on the financial landscape continues to expand.

What Comes Next

While SpaceX has not indicated any plans to buy or sell more bitcoin, the company’s holdings will likely remain a point of interest for both crypto enthusiasts and traditional market watchers. With bitcoin’s market cap now rivaling that of major global corporations, the asset has cemented its place in the broader conversation about the future of finance.

If macroeconomic conditions continue to favor risk assets, and central banks ease monetary policy in the coming months, bitcoin could have further room to climb. That, in turn, WOULD push the value of SpaceX’s holdings even higher, reinforcing the company’s status as one of the largest corporate bitcoin holders in the world.

For now, the latest surge underscores the resilience of the cryptocurrency market and its capacity to deliver outsized gains, even for companies whose primary focus lies far beyond digital assets.