2365: SpaceX Bitcoin Reserve Sparks $500 Billion Bitcoin Rotation

**Justin Verrengia** (0:00)
Everybody thinks they have more time to buy Bitcoin until somebody bigger starts buying it too.
Then suddenly, time matters. Check this out. A $500 billion Bitcoin prediction sounds ridiculous until you understand what just happened. SpaceX isn't being discussed because it owns Bitcoin. SpaceX is being discussed because it's treating Bitcoin as a strategic reserve asset, and that changes the conversation. For years, Bitcoin critics argued that serious companies would never hold Bitcoin on their balance sheet. It's too volatile, too risky, JV, too speculative. And yet here we are, fam. One of the most valuable private companies on earth is treating Bitcoin as a strategic reserve asset, not a trade, not a gamble, a reserve. Think about what that means. Because if Bitcoin can function in SpaceX's treasury, who's next? That's the question investors should be asking. Not because SpaceX is the biggest buyer, but because adoption doesn't happen all at once. It happens one balance sheet at a time, one treasury at a time, one company at a time. Then suddenly everyone looks around and realizes the rules changed. That's why Strategy CEO Phong Le just suggested the SpaceX IPO will trigger a $500 billion rotation into Bitcoin. Not because $500 billion arrives tomorrow, but because capital follows success and few companies have captured the public imagination like SpaceX. When people make money, they look for the next place to put that money, the next opportunity, the next trend, the next winner. And every cycle, the pool of available Bitcoin gets smaller. This is the part most people miss. Institutions already control approximately 3.87 million Bitcoin, nearly 20% of the entire 21 million supply.
BlackRock alone holds more than 766,000 Bitcoin. Strategy now controls over 845,000 Bitcoin. Public companies collectively hold more than 1.2 million Bitcoin. Governments hold another 500,000 Bitcoin, and an estimated 3-4 million Bitcoin are permanently lost, gone forever, never coming back. Suddenly, the question isn't whether institutions will buy Bitcoin. The question is, how much Bitcoin is actually left? Because once you start doing the math, the numbers become absurd. Together, BlackRock and Strategy control more than 1.6 million of the Bitcoin supply.
More than many nations, more than most people can even comprehend. Now, add governments. The United States holds approximately 328,000 Bitcoin. China holds another 190,000 Bitcoin. And America just proposed purchasing 1 million Bitcoin, 200,000 per year over the course of the next five years and hodling for 20 years. Then we add the ETFs, the private companies like SpaceX. Then we remove the 3 to 4 million Bitcoin permanently lost. And suddenly, the markets start looking a lot smaller than 21 million coins. And that's before the next wave arrives. Pension funds, sovereign wealth funds, insurance companies, endowments, family offices. None of them need to buy all the Bitcoin. They only need to decide Bitcoin belongs inside the portfolio. That is how supply disappears. Not all at once, gradually, then suddenly. Because once Bitcoin is viewed as a reserve asset, the conversation changes from speculation to allocation. And that's a much bigger market. The question is no longer, will companies buy Bitcoin? The question is, how many companies are already accumulating Bitcoin before the market realizes what's happening? You don't have to agree with the $500 billion number, but you should probably hear why Phong Le, strategy CEO, believes this will happen. Here's a clip taken from CNBC's Power Lunch with the strategy CEO, Phong Le.

**Phong Le** (4:03)
I think if there's $500 billion of money that is going into SpaceX and Google and Anthropic, people look at crypto in 2021 like they look at AI this year, right? It's a high vol, high return asset class, and the same people that put money into crypto and have made money are going to sell it, put it into SpaceX, hope to get a three day pop, sell SpaceX and turn around and buy crypto cheap. I think that's what's going to happen.

**Justin Verrengia** (4:29)
There you go. He says that flow into the SpaceX IPO will eventually end up in Bitcoin, buy in Bitcoin cheap, especially at a discount right now. $500 billion is very significant because right now the entire Bitcoin market cap is only 1.2 trillion. So just think of the effect that capital flow will have on the Bitcoin price. And there's also more headlines about the SpaceX S1 IPO filing, suggesting as Bitcoin holdings may be used as a strategic reserve for excess cash as reported by Bloomberg. The firm currently holds 18,712 Bitcoin, bought for $661 million, now worth over $1.1 billion.
But here's a brand new clip taken from Bloomberg Crypto.

**SPEAKER_3** (5:16)
The idea probably based on the language and the filing is that Musk might view, or in aggregate, not just Musk, right, there are other people running SpaceX ahead of the world's biggest IPO. They might just see it as a hedge against inflation, long-term asset, but most likely this sort of strategic reserve for its excess cash, bearing in mind that excess cash is probably doing a little bit too much legwork in the sentence I just said.