Elon Musk's SpaceX Bitcoin Investment: Question Marks That Need to Be Disclosed in IPO Filing

As SpaceX, Elon Musk’s space technology company, prepares for its largest-ever IPO, the sharp decline in the value of its Bitcoin holdings is raising concerns among investors and analysts. Elon Musk’s cryptocurrency management strategy has become a critical issue that needs to be detailed in the upcoming IPO filing.

SpaceX’s Bitcoin assets have lost approximately $235 million in value over the past three months. The company, valued at over $1.75 trillion and aiming to raise up to $50 billion in its June IPO, plans to submit a confidential filing to the SEC in March, according to reports. This filing will disclose that the company holds 8,300 Bitcoin stored in Coinbase Prime custody. According to Arkham Intelligence data, as of Saturday morning, these assets are worth about $544.8 million, distributed across 43 addresses.

How Did SpaceX’s 8,300 Bitcoin Assets Lose Value?

Elon Musk’s rocket company SpaceX’s Bitcoin position has dramatically decreased over the last three months. When Bitcoin was around $92,500 in December, SpaceX’s holdings were worth approximately $780 million. Even in early February, when news of a merger between Musk’s SpaceX and xAI surfaced, Bitcoin was trading around $78,000, and the portfolio’s value had dropped to $650 million.

Currently, with Bitcoin trading at around $70,660, SpaceX’s Bitcoin holdings are valued at approximately $545 million. Despite not selling a single coin, the company has experienced these losses. This indicates that the upcoming IPO filing will clearly show paper losses related to Bitcoin, and future quarterly earnings reports will reflect the impact of this volatility.

Comparison with Tesla: Different Strategies by Elon Musk’s Companies

Elon Musk’s other company, Tesla, has followed a similar but distinct approach regarding Bitcoin. Tesla has adjusted its position and sold some of its crypto assets at times to manage losses. However, despite this strategy, Tesla has recorded hundreds of millions of dollars in paper losses in the past, often overshadowing its core automotive business headlines.

In contrast, SpaceX has adopted a completely different approach. According to Arkham Intelligence, SpaceX has maintained its position through every market cycle and has never sold any Bitcoin. This patience strategy allowed SpaceX’s Bitcoin holdings, which reached $2 billion in late 2021, to absorb the sharp decline and subsequent fluctuations in 2022. While the company’s Bitcoin balance has generally fluctuated between $400 million and $800 million, it has not sold any of its holdings.

Meanwhile, Tesla reported total revenues of $94.8 billion and a gross profit of $17 billion in 2025. Therefore, the paper losses on Bitcoin in Tesla’s balance sheet have not significantly impacted the company’s overall financial health. However, for SpaceX, this situation could be more sensitive during the IPO application process.

Bitcoin Disclosure Will Be Mandatory in the IPO Filing

It has become inevitable for SpaceX’s IPO filing to disclose its Bitcoin holdings. The disclosures in the S-1 filing will directly expose investors to potential paper gains and losses related to the company’s crypto assets; this will mirror the volatility and media risk experience Tesla has faced.

Previously, SpaceX was never required to explain its crypto position or management strategy. However, public market investors will now have responsibilities, and Elon Musk will need to provide detailed explanations. The company recently purchased an additional 1,019 Bitcoin and still has approximately $30 billion in resources under its program.

This will be a significant test of Elon Musk’s cryptocurrency management philosophy, now under public scrutiny for the first time. How the Bitcoin position will be explained in the SEC filing and how investors will react will remain a critical aspect of SpaceX’s IPO process.