Elon Musk and Bitcoin: why the BTC network cannot be "squeezed" and what Tesla and SpaceX hold
In recent days, the crypto community has once again turned to Elon Musk's landmark 2021 speech, where the head of Tesla and SpaceX explained his support for bitcoin. Contrary to popular belief, the entrepreneur's key argument concerned not the limited supply, but the very architecture of the network. In his words, bitcoin has "no throat that can be squeezed," and this fundamental property makes it invulnerable to external pressure.
Decentralization as the main asset
Speaking at The B Word conference in July 2021, Musk began with a philosophical definition of money, calling it an "information system for the allocation of labor." He then sharply criticized traditional finance: bank transfers take one to five business days, the ACH payment system is outdated and insecure, and paying by card, in his metaphor, is akin to handing your password to a stranger.
Musk sees bitcoin's main advantage not in settlement speed, but in the absence of a central point of failure. In such a network, it is impossible to force anyone to compromise their principles. "Bitcoin primarily solves a problem. It has no 'throat' that can be 'squeezed,' it is decentralized, no one can be forced in any way to empty their bitcoin account," he said at the time. Indeed, the network has no headquarters, no CEO who can be pressured.
What Tesla and SpaceX ultimately did
Musk, however, also noted the drawbacks: "Transaction volume is low, fees are high, it's hard to use, but the potential is enormous." His position by that point was already contradictory. Two months before the speech, Tesla had refused to accept bitcoins for cars, citing harmful emissions from mining.
Things then got even more interesting. Tesla purchased BTC worth $1.5 billion in early 2021, and by mid-2022 had sold 75% of its position, netting $936 million. SpaceX chose a different tactic: the company never touched its reserves. In all SpaceX documents since 2024, 18,712 BTC, purchased for $661 million, are recorded. Only their market valuation changed: $1.75 billion at the end of 2024 and $1.10 billion in June of this year.
The coins remained on the balance sheet even under pressure from circumstances. In July, a test transfer of $88 sparked rumors of a sell-off, and public reporting showed a paper loss of $539 million for the half-year, yet no one touched the reserve. Tesla, meanwhile, still holds 11,509 BTC on its balance sheet, purchased for $386 million. They have remained untouched since 2022. The second-quarter report showed a decline of $334 million over six months. Both Musk companies own 30,221 BTC, acquired for $1.05 billion. At the current price of around $78,500, this amounts to approximately $2.37 billion.
My analysis: The behavior of Musk's two companies is a classic example of strategic divergence: one locks in profits and losses, the other demonstrates "diamond hands." But the main takeaway from Musk's words remains relevant: bitcoin's decentralized nature is not just a technical detail, but its primary defense mechanism. In a world where regulators and corporations can pressure any centralized structure, the absence of a "throat" is not a weakness, but a strategic advantage that will only strengthen over time.