How Elon Musk's SpaceX Bitcoin Strategy Turned into a Risk Before the IPO

Elon Musk’s space company SpaceX faces an unexpected problem before its historic IPO: its portfolio of 8,285 bitcoins has lost nearly half a billion dollars in value. This digital asset position may surprise investors when compared to the paper losses that could be reflected in the upcoming stock valuation. Over the past three months, Elon Musk’s company has experienced a $235 million loss due to bitcoin’s price decline—without any sales.

Rising Risks Toward June IPO

SpaceX is reportedly filing a confidential IPO application with the SEC in March, with a listing expected in June. The company’s valuation is anticipated to exceed $1.75 trillion, and it could raise up to $50 billion—breaking the record set by Saudi Aramco’s $29 billion IPO in 2019, making it one of the largest in history. However, the IPO filing will include details of SpaceX’s bitcoin holdings.

According to Arkham Intelligence data, the 8,285 bitcoins held across 43 Coinbase Prime addresses are valued at $544.8 million as of Friday morning. This was about $780 million in December when bitcoin was trading around $92,500. After the news of Elon Musk’s SpaceX-xAI merger in early February, the value dropped to $650 million, and then quickly eroded further to current levels.

Blockchain data shows that since early 2026, SpaceX has not changed its bitcoin position. It has not sold any. Yet, the dollar value has rapidly weakened.

Volatility Concerns in the S-1 Filing

When SpaceX’s IPO registration (S-1) goes public, investors will see unrealized losses related to its bitcoin portfolio. Elon Musk’s rocket company will have to disclose paper gains or losses tied to bitcoin price movements. In future quarterly reports, bitcoin’s volatility could pose a recurring risk that overshadows the company’s core operations.

The public markets will begin to question the true commercial purpose of Elon Musk’s holdings. Why does SpaceX, a rocket and satellite company, hold bitcoin? This question must be addressed in the company’s S-1 disclosures.

Tesla’s Hard Lesson — How Two Companies Have Borrowed Fuel

Elon Musk’s automotive company Tesla exemplifies how problematic this can be. Although Tesla has never changed its bitcoin position, it has recorded paper losses in the hundreds of millions during downturns. These losses have created headline risks that overshadow Tesla’s main vehicle manufacturing business.

In 2025, Tesla reported total revenue of $94.8 billion and a gross profit of $17 billion. The millions of dollars in bitcoin losses on its balance sheet are manageable for a company of this scale. But for SpaceX, the situation could be different. Although not yet publicly traded, the bitcoin volatility reflected in the first-quarter reports after the IPO could directly impact investor confidence.

Unlike Tesla, SpaceX has not sold any bitcoin. As seen in Arkham data, the company has maintained its position through each cycle. Is this a strategic decision or a reflection of Elon Musk’s philosophical bias toward bitcoin? The S-1 will provide the answer.

SpaceX’s Bitcoin Journey — Why Still Holding?

SpaceX’s bitcoin holdings reached about $2 billion at the end of 2021. It experienced a dramatic decline throughout 2022. Over the past two years, the value fluctuated between $400 million and $800 million. Despite these ups and downs, Elon Musk’s company has never liquidated its position.

Unlike Tesla, SpaceX has not sold or repurchased bitcoin. It has held steady. What is behind this strategic choice? Is it Elon Musk’s ideological commitment to crypto? or part of SpaceX’s long-term asset preservation strategy?

These are now questions that public investors need to ask. Elon Musk’s continued holding of bitcoin before the IPO means that volatility will be a factor investors must reckon with.

Elon Musk’s Four Options

SpaceX’s June listing application shows Elon Musk faces four choices: sell now (locking in paper losses), hold (accepting volatility), delay liquidation, or sell gradually. Whatever he chooses, the decision will be disclosed in the S-1, and investors will have to evaluate it.

Bitcoin’s current price is around $67,180, with SpaceX’s portfolio worth approximately $556 million. If the price drops to $60,000, this could fall below $500 million. Conversely, if it rises to $80,000, the portfolio could rebound to $660 million.

Elon Musk’s comments on SpaceX’s bitcoin holdings, no matter how detailed, will influence post-IPO investor relations. Because this is no longer just an asset management issue—it has become a factor affecting stock price volatility.