- In the latest research, Grayscale officials said SpaceX is expected to become the largest publicly traded Bitcoin holding in the future.
- This report comes while SpaceX is preparing for one of the biggest initial public offerings.
- On May 26, Strategy announced the completion of a buyback of about $1.5 billion worth of its zero convertible notes that are due in 2029 amid turmoil in the crypto market.
In the latest research, Grayscale revealed that SpaceX, which currently holds around 18,712 Bitcoins, is expected to become the biggest Bitcoin-holding public company amid the buzz around its IPO valuation.
In the research, Zach Pandl, Head of Grayscale Research, stated that, “SpaceX is expected to be the largest public company holding Bitcoin. We believe that the number of diversified businesses holding BTC will increase over time, even if we see the number of DATs declining. Altogether, these dynamics could bolster demand for BTC—and underpin the value of BTC over time.”
Why Does Grayscale Think SpaceX Will Become the Biggest Bitcoin Holding Public Company?
In the recent filings with the U.S. Securities and Exchange Commission, SpaceX has revealed that it is holding 18,712 Bitcoin (BTC), which is worth around $1.4 billion at the current price. In order to acquire one Bitcoin, SpaceX has paid around $35,320. It means that the company has paid the strong cost basis of $661 million.
At the time of writing this, Bitcoin is trading at around $76,000 with a market capitalization of around $1.51 billion, according to CoinMarketCap. Based on the current price, the Bitcoin holding of SpaceX has grown more than double in value. This makes the company one of the biggest corporate holders of BTC.
Despite this large holding of BTC, SpaceX is still far behind the biggest BTC holding company in the world, Strategy, led by Michael Saylor. Strategy is currently around 843,738 BTC, whose cumulative value is around $64 billion.
In the research, Zach Pandl shared two categories of Bitcoin Treasuries, including Digital Asset Treasuries (DATs) and Diversified Businesses. DATs, such as Strategy, have very small operating businesses compared to the size of their BTC holdings. These companies are mostly relying on Bitcoin access vehicles for public equity investors.
On the other hand, many public companies with diverse business operations are adding Bitcoin as a part of their corporate investment strategy. This includes companies like Tesla, Coinbase, and Block.
“Over time, we expect to see more diversified businesses holding Bitcoin—i.e., new corporate adopters—and fewer pure-play DATs as these firms diversify their business models. Corporate buyers often hold Bitcoin for the same reason as other investors: because it helps diversify portfolios against fiat currency risks. SpaceX and Tesla were relatively early corporate adopters of Bitcoin, but we expect many other forward-thinking businesses to follow in the coming years,” stated the research.
This research from Grayscale is going to put SpaceX under the spotlight amid the growing number of companies with Bitcoin treasuries. This is coming amid the company’s preparation for one of the biggest initial public offerings.
Strategy Repurchases $1.5 Billion in Debt.
Amid the turmoil in the overall crypto market, Strategy has announced the completion of a buyback of about $1.5 billion worth of its zero convertible notes that are due in 2029. For this settlement, Strategy is expected to pay approximately $1.38 billion for them, which is an around 8% discount. This repurchase will cut down its total convertible debt from $8.2 billion to around $6.7 billion, according to the official announcement.
Andrew Kang, Chief Financial Officer of Strategy, stated in the official announcement that, “The repurchase of the 2029 converts is both equity and credit positive for our investors and demonstrates our continued focus on liability management. Strategy remains committed to maintaining a robust cash reserve to support the credit quality of our Digital Credit securities. We plan to replenish our cash reserve over time through a mix of Digital Capital, Digital Credit, and Digital Equity sales based on market conditions.”
In response to this announcement, Peter Schiff, a popular Bitcoin critic, raised a major question in a post on X, saying that “You’re running out of cash. What will you sell next to keep the wheels from falling off?”
Credit: Source link
