SpaceX will become the largest Bitcoin holder: Grayscale

In the latest research, Grayscale revealed that SpaceX, which currently holds around 18,712 BTC, is expected to become the largest public company holding BTC amid the hype around its IPO valuation.

In the research, Grayscale Research Head Zach Bandel stated, “SpaceX is expected to be the largest public company holding Bitcoin. We believe the number of diversified companies holding BTC will increase over time, even if we see the number of DATs decline. Altogether, these dynamics could boost demand for BTC — and boost the value of BTC over time.”

Why does Grayscale think SpaceX will become the largest public Bitcoin holding company?

In recent filings with the US Securities and Exchange Commission, SpaceX revealed that it owns 18,712 bitcoins (BTC), which is worth about $1.4 billion at the current price. In order to get one BitcoinSpaceX paid about $35,320. This means the company paid a solid cost basis of $661 million.

At the time of writing, Bitcoin is trading at around $76,000 with a market cap of around $1.51 billion, according to CoinMarketCap. At the current price, SpaceX’s Bitcoin ownership has more than doubled in value. This makes the company one of the largest holders of BTC.

Despite this significant Bitcoin holding, SpaceX still lags far behind the world’s largest Bitcoin holding, Michael Saylor-led Strategy. The strategy currently stands at around 843,738 BTC, which has a cumulative value of around $64 billion.

In the research, Zach Bandel shared two categories of Bitcoin treasuries, including digital asset treasuries (DATs) and diversified businesses. DATs, like Strategy, have a very small operating business compared to the size of their BTC holdings. These companies mostly rely on Bitcoin access tools for public equity investors.

On the other hand, many public companies with diversified business operations are adding Bitcoin as part of their investment strategy. This includes companies like Tesla, Coinbase, and Block.

“Over time, we expect to see more diversified companies holding Bitcoin — that is, new companies adopting cryptocurrencies — and fewer DATs as these companies diversify their business models. Corporate buyers often hold Bitcoin for the same reason other investors do: because it helps diversify portfolios against the risks of fiat currencies. SpaceX and Tesla were early adopters of Bitcoin, but we expect many other forward-thinking companies to follow in the coming years,” research.

This research from Grayscale will put SpaceX in the spotlight amid the growing number of companies that own Bitcoin securities. This comes as the company prepares for one of its largest initial public offerings.

The strategy buys back $1.5 billion worth of debt.

Amid the turmoil in the overall cryptocurrency market, Strategy announced the completion of the repurchase of approximately $1.5 billion worth of its zero-sum convertible notes due in 2029. For this settlement, strategy It is expected to pay them approximately $1.38 billion, which is a discount of about 8%. This buyback will reduce its total convertible debt from $8.2 billion to about $6.7 billion, according to the official announcement.

Andrew Kang, CFO, Strategy, said: Official announcement “The 2029 convertible buyback is positive for equity and credit for our investors and demonstrates our continued focus on liability management. The strategy remains committed to maintaining a strong cash reserve to support the credit quality of our digital credit securities. We plan to replenish our cash reserve over time through a combination of digital equity, digital credit and digital equity sales based on market conditions.”

In response to this announcement, Peter Schiff, a well-known Bitcoin critic, raised a key question in a discussion Share on Xsaying that “You’ve run out of money. What will you sell next to keep the wheels from falling off?“