Tesla CEO Elon Musk has revealed for the first time that his firm SpaceX owns bitcoin (BTC).
The company has yet to officially announce how much bitcoin it has purchased, although Musk’s other company, Tesla, bought $1.5 billion of the cryptocurrency earlier this year, triggering a major bitcoin price rally.
The rally ended abruptly after Tesla stopped taking bitcoin payments due to environmental concerns, but “The Word” – speaking at a virtual bitcoin (BTC) event – suggested the unsuspecting tech billionaire should consider Tesla accepting cryptocurrencies again. was on the verge of doing so. Following promising signs the percentage of renewable energy used for mining was increasing.
The changing narrative of bitcoin being “green” could help restart a rally, Coin Metrics co-founder Nick Carter told CNBC a few hours ago, noting that BTC’s fundamentals are getting better in terms of stability. .
Musk appeared alongside Arch Invest CEO Kathy Wood and Twitter CEO Jack Dorsey and Square Crypto’s moderator Steve Lee. Musk didn’t reveal any additional details about SpaceX’s purchase other than saying:
“I own bitcoin, Tesla owns bitcoin, SpaceX owns bitcoin, and I personally own a little Ethereum and Dogecoin.”
He also added: “We are not selling any bitcoins, nor am I personally selling anything, nor is SpaceX selling any bitcoins.”
The statement confirms long-standing speculation that the space infrastructure company was adding bitcoin to its reserves. In mid-March, Anthony Scaramucci claimed in a tweet She He believed that Musk didn’t just stop with the purchase of Tesla.
Elon Musk didn’t stop with Tesla. I understand that SpaceX owns #bitcoin on its balance sheet. @Elon Musk owns more than $5 billion #bitcoin Tesla, SpaceX and personally. No living person has done more to protect the planet from climate change. (1/2)
— Anthony Scaramucci (@Scaramucci) March 19, 2021
During the event, Musk wore a BTC-themed T-shirt and was relatively optimistic about the future of digital gold as he stated that he has “much more bitcoin than Ether or DOGE.”
— Wolf of All Streets (@scottmelker) 21 July 2021
Musk said that there “seems to be a positive trend” in the use of renewable energy for BTC mining, citing the recent closure of coal-fired mining plants in China.
“I want to do a little more diligence to confirm that the percentage of renewable energy use is likely to be 50% or more and that number has a tendency to increase. If so, Tesla will resume accepting bitcoin. Will do it,” he said.
Nick Carter discusses mining on CNBC
Speaking with CNBC’s Fast Money on July 22 about Musk’s latest comments, Carter said he was “glad” that Musk “began to evaluate the facts on the ground because they are very favorable.”
Carter echoed Musk’s sentiments on China-based BTC mining, noting that “the Chinese hash rate was heavily influenced by the energy produced by coal,” and a lack of transparency from “anonymous miners” in that area.
“Fundamentals are improving in terms of bitcoin stability,” Carter said. The Coinmetrics co-founder pointed to the fact that miners in the US and Canada are more likely to use sustainable practices and are more willing to disclose information.
“a lot of that [mining in China] Mining has been replaced by mining in Canada and the US, where miners are more permanently concentrated. We are also seeing a lot of disclosure from miners, 32% of the hash rate joined a council, the Bitcoin Mining Council, and they now produce quarterly disclosures,” he said.
Connected: Bitcoin mining difficulty drops for the fourth time in a row
Carter cited a recent study by the Bitcoin Mining Council (BMC) that surveyed 32% of miners on the BTC.network. The poll forecast a sustainable electricity mix of 67% in the second quarter.
It’s not clear whether Musk factored in this survey as part of his due diligence, however, as it relied only on self-reported data from a limited set of three survey questions.
Carter acknowledged that the stability of BTC will not be fully verified until the world sees where most of the miners have set up shop after the exodus from China. However, in his own view, he stated that:
“I think bitcoin is perfectly suited for payments today, and of course the environmental cost is offset by its enormous utility”