Elon Musk's crypto empire in question: SpaceX prepares its biggest IPO with a depreciated Bitcoin portfolio

The convergence of the cryptocurrency world and Elon Musk’s megastructures creates an unprecedented scenario for the financial market. On the eve of what could become the largest initial public offering in history, SpaceX now faces a dilemma few major tech companies have encountered: how to justify to public investors a crypto portfolio weakened by market volatility. Elon Musk’s company, which holds approximately 8,285 bitcoins, sees the value of its crypto holdings shrink under the pressure of a correctional market.

SpaceX prepares for the largest IPO in history

According to recent disclosures, SpaceX plans a confidential filing with the SEC as early as March 2026, positioning the company for a listing in June. This IPO aims for a valuation exceeding $1.75 trillion, with a fundraising target of up to $50 billion. These figures far surpass the previous record set by Saudi Aramco in 2019, which raised $29 billion.

However, buried in the disclosure documents is an element most investors had never had to consider before: SpaceX’s direct exposure to Bitcoin. For years, Elon Musk has kept this digital asset position out of the public market spotlight. That scenario is about to change dramatically.

A Bitcoin portfolio depreciated by $235 million in three months

Data from Arkham Intelligence reveal a concerning situation for future SpaceX investors. The 8,285 bitcoins held in custody across 43 separate Coinbase Prime addresses show a dramatic loss in value. In December 2025, when Bitcoin approached $92,500, this holding was worth about $780 million.

Less than three months later, at the end of February 2026, with Bitcoin near $78,000, the position had fallen to around $650 million. Today, with Bitcoin around $67,020, the portfolio is valued at approximately $555 million. This $235 million decline over three months represents a significant loss in value, realized entirely without SpaceX selling a single coin.

SpaceX’s S-1 form will report these unrealized Bitcoin losses for any period during which BTC declines. Future quarterly financial reports will need to reflect this crypto volatility, whether the company buys, sells, or simply holds its portfolio. This exposure, invisible to private shareholders, will become a major consideration in investment analyses.

Tesla and the precedent of unrealized crypto losses

Elon Musk has already navigated this complexity with Tesla. The automaker recorded hundreds of millions of dollars in unrealized losses during previous crypto market corrections, without ever changing its core position. This dynamic has created ongoing media risk, sometimes overshadowing the fundamentals of the automotive business.

It is true that Tesla posted $94.8 billion in revenue in 2025 with a gross profit of $17 billion. At this scale, paper losses of several million dollars in Bitcoin on the balance sheet have a relatively limited impact. However, the strategic difference is notable: SpaceX is making this disclosure during one of the most significant Bitcoin corrections in years, not during a rally.

An uncompromising portfolio strategy

The trajectory of SpaceX’s Bitcoin holdings reveals a distinct investment philosophy. The crypto accumulation peaked near $2 billion at the end of 2021, collapsed in 2022, and has oscillated between $400 million and $800 million over the past two years. Unlike Tesla, which adopted a more active approach by selling and then repurchasing Bitcoin, Arkham Intelligence data suggest that SpaceX has maintained a passive strategy: holding its assets through each market cycle.

This approach reflects a long-term confidence in Bitcoin, accepting inherent volatility as a cost of strategic positioning. For future SpaceX investors, this transparency will offer unprecedented insight into how Elon Musk’s mega-enterprises integrate Bitcoin into their balance sheets.