00:00According to an SEC filing on Wednesday, Elon Musk's SpaceX holds more than twice as much Bitcoin as previously estimated.
00:07Here to break it all down with us is Bloomberg's Ed Lovelow, co-host of Bloomberg Technology.
00:11Ed, Elon Musk's view on Bitcoin have swung between endorsement to skepticism. Where does it stand right now?
00:17Yeah, there's a big difference in the SpaceX story between the what and why of these Bitcoin holdings.
00:22So as of that regulatory filing, they hold 18,712 Bitcoin and the average purchase price over the history of
00:31the holdings is like 35,000 US dollars per token.
00:35So Bitcoin cost them about 661 million dollars to acquire. The value of the holdings is 1.3 billion dollars.
00:42And like the way that SpaceX would tell it is what are they treating this as?
00:46Basically, it's held as a treasury reserve asset just in the way that cash or bonds would be.
00:51But by a custodian third party, that's very different to saying, well, what is Elon Musk's attitude to it?
00:57You don't get that from the filing itself. Although I guess if you guys want to have some fun, this
01:02is Bloomberg Crypto.
01:03Yeah, we could come up with some ideas.
01:04Well, I guess the question is, what does it end up using that Bitcoin for?
01:08Does it just sit there as cash and maybe it accumulates or maybe it falls in value or does does
01:14SpaceX sell it?
01:15Well, because what we do know from the filing is that they haven't been sellers since I think the end
01:20of 2024, the idea probably based on the language in the filing is that Musk might view or in aggregate,
01:29not just Musk, right?
01:30There are other people running SpaceX ahead of the world's biggest IPO.
01:33They might just see it as a hedge against inflation, long term asset, but most likely this sort of strategic
01:39reserve for its excess cash.
01:42Bearing in mind that excess cash is probably doing a little bit too much legwork in the sentence I just
01:47said.
01:48Hey, oh, go ahead, Isabel.
01:50Maybe 15 seconds here, Ed.
01:51I mean, Tesla accepted Bitcoin payments before in reverse course.
01:54Do you think the same will happen with SpaceX?
01:56It's never, but it's never really taken off.
01:58And, you know, I think that SpaceX, right.
02:01Remember, this is an S1 where everything has to be completely buttoned up in disclosures, be they boilerplate or very
02:08real warnings to investors ahead of the IPO.
02:11And this is a very sophisticated finance or treasury org at SpaceX.
02:16So that's reserve cash or reserve asset seems to be the logic outlined by the doc.
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