Tesla CEO Elon Musk has revealed for the first time that his company SpaceX owns Bitcoin (BTC).
The company has yet to officially announce how much Bitcoin it has bought, however Musk’s other company Tesla bought $ 1.5 billion of the cryptocurrency earlier this year, prompting a major Bitcoin price rally.
That rally came to an abrupt end after Tesla stopped accepting Bitcoin payments due to environmental concerns, but speaking in “The ₿ Word,” a virtual Bitcoin (BTC) event, the erratic tech billionaire suggested that Tesla was on the verge. to accept the cryptocurrency again. Following promising signs, the percentage of renewable energy used for mining was increasing.
The changing narrative of Bitcoin going “green” may help reignite a rally, and Coin Metrics co-founder Nic Carter told CNBC a few hours ago that BTC’s fundamentals are improving in terms of sustainability.
Musk appeared alongside Ark Invest CEO Cathie Wood and Twitter CEO Jack Dorsey and Square Crypto moderator Steve Lee. Musk did not reveal any additional details about the SpaceX purchase other than saying:
“I own Bitcoin, Tesla owns Bitcoin, SpaceX owns Bitcoin, and I personally own some Ethereum and Dogecoin, of course.”
He added that: “We are not selling Bitcoin, nor am I personally selling anything, nor is SpaceX selling Bitcoin.”
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 what He believed Musk didn’t stop with just buying Tesla.
Elon Musk didn’t stop with Tesla. I understand that SpaceX owns #bitcoin on your balance sheet. @Elon Musk owns more than $ 5 billion in #bitcoin through 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 donned a BTC-themed T-shirt and appeared to be relatively optimistic about the future of digital gold, as he claimed that it owns “much more Bitcoin than Ether or DOGE.”
– The wolf of all the streets (@scottmelker) July 21, 2021
Musk stated that “there appears to be a positive trend” in the use of renewable energy for BTC mining, citing the recent closure of coal mining plants in China.
“I want to do a little more diligence to confirm that the percentage of renewable energy use is more likely at or above 50% and that there is a trend toward that number increasing. If so, Tesla will accept Bitcoin again, “he said.
Nic Carter talks about mining on CNBC
Speaking about Musk’s latest comments with CNBC’s Fast Money on July 22, Carter saying he was “happy” that Musk had started to evaluate the “facts on the ground because they are very favorable.”
Carter echoed Musk’s sentiments about China-based BTC mining, noting that “the Chinese hash rate was heavily influenced by energy produced by coal” and that there had been a lack of transparency from the ” anonymous miners “in that region.
“Fundamentals are improving in terms of the sustainability of Bitcoin,” 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] it has been replaced by mining in Canada and the United States, where miners are much more focused on sustainability. We are also seeing a lot more disclosure from miners, 32% of the hash rate joined a council, the Bitcoin Mining Council, and they now produce quarterly disclosures, ”he said.
Related: Bitcoin mining difficulty drops for the fourth time in a row
Carter referenced the recent study by the Bitcoin Mining Council (BMC) that surveyed 32% of miners on the BTC network. The survey returned an estimate of a sustainable energy mix of 67% in the second quarter.
However, it is unclear whether Musk has considered this survey as part of his due diligence, as it relied on self-reported data from a limited set of just three survey questions.
Carter admitted that the sustainability of BTC will not be fully verifiable until the world sees where the majority of miners settled after the exodus from China. However, in his own opinion, he stated that:
“I think Bitcoin is perfectly suitable for payments today, and of course the environmental costs are outweighed by its enormous utility.”