Elon Musk & Crypto: His Biggest Bets, Bold Claims, and Investments

Elon Musk has become one of the most influential figures in the world of cryptocurrency. His tweets and public statements often send crypto prices soaring or plunging, making headlines and affecting millions of investors. For example, when Tesla announced in early 2021 that it had bought $1.5 billion in Bitcoin, its price jumped to new all-time highs.

Similarly, his playful tweets about Dogecoin, such as calling it “the people’s crypto, have sparked massive rallies in that meme-based coin. In general, his blend of humor, hype, and occasional technical commentary has repeatedly shaken crypto markets and drawn mainstream attention to Bitcoin, Dogecoin, and other tokens. On that note, let’s take a look at Elon Musk’s crypto investments, biggest bets, and bold claims.

Tesla’s Bitcoin Purchase & Selloff

Tesla’s own charge into Bitcoin is one of Musk’s biggest public crypto investments. In February 2021, Tesla disclosed in its annual report that it had invested $1.5 billion of its corporate treasury in Bitcoin. This announcement caused an immediate surge in Bitcoin’s price. It roughly had a 20% jump to over $47,000 at the time.

Tesla said it bought the coins as part of a plan to diversify its cash holdings, and even planned to begin accepting Bitcoin as payment for cars in the near future. This mainstream corporate backing was seen as a major validation of Bitcoin. Even Reuters noted that when “the richest man in the world” puts corporate funds into Bitcoin, “everyone has to take a second look”.

However, the company’s Bitcoin journey did not end there. In May 2021, citing environmental concerns over Bitcoin mining’s fossil-fuel usage, Musk abruptly announced that Tesla would suspend accepting Bitcoin for car purchases. This tweet, saying “Energy usage trend over past few months is insane,” immediately sent cryptocurrency prices into a tailspin.

Later, in July 2021, at a crypto conference, he reiterated that Tesla would only resume Bitcoin payments once miners use more renewable energy. He was aiming for roughly 50% clean energy. Musk emphasized that Tesla’s “mission is accelerating sustainable energy,” and so the company must “do appropriate diligence on the energy usage of bitcoin”.

In mid-2022, Tesla actually reduced its Bitcoin holdings. In its Q2 2022 earnings report, it said it had sold about $936 million worth of Bitcoin. This is roughly three-quarters of what it had bought to bolster its cash position amid production uncertainties. Musk told Reuters this move was “not a sale of all Bitcoin,” stressing it was done for liquidity, not because he had lost faith in Bitcoin’s long-term value. After the sale, he said Tesla “did not make any BTC sales” beyond this, and he remained open to buying more Bitcoin in the future if conditions were right.

Throughout, Tesla’s crypto policy has been framed as opportunistic: the company’s public filings even noted it could acquire and hold digital assets from time to time or long-term. In practice, Tesla’s swings of buying large amounts of Bitcoin, then halting payments and selling some holdings, mirrored Musk’s shifting stance on energy and regulation. Tesla never took a position on Dogecoin, but his involvement with Doge came in other ways.

Musk’s Role in Dogecoin Popularity

Meme-based Dogecoin has arguably been Musk’s favorite cryptocurrency to hype. Originally created as an internet joke in 2013, Dogecoin was practically unknown until he began tweeting about it. In December 2020, he sent Dogecoin soaring by tweeting “One word: Doge,” causing the coin’s price to spike that day.

He followed up in early 2021 by tweeting a Shiba Inu, the Doge meme dog, and calling Dogecoin “the people’s crypto,” which sent DOGE up another 60%. In a 2021 profile of his tweets, Reuters noted these messages were turning the once-obscure Dogecoin into a speculator’s dream, helping Doge’s price surge by about 4,000% over 2021.

Musk also took concrete steps that boosted Dogecoin’s profile. In January 2022, he announced on Twitter that Tesla would begin accepting it for certain merchandise items like a “Giga Texas” belt buckle and mini Tesla Model S, which immediately lifted Dogecoin’s price by around 14%.

His playful participation on comedy shows further amplified Doge: for example, when hosting Saturday Night Live in May 2021, he called it “a hustle,” which paradoxically caused it to crash temporarily. Musk later joked he’d launch SpaceX’s “Doge-1” satellite funded with Dogecoin, again generating buzz. However, the real impact on price was modest.

This dogged attention earned him titles like “Dogefather” among crypto fans. He frequently interacts with the Dogecoin community, calling himself an honorary captain and praising the dog-themed memes. Musk has said he likes Doge’s irreverence and pets, even joked that the most ironic outcome would be if the cryptocurrency that was started as a joke ends up being the leading cryptocurrency.

All this has helped keep Dogecoin prominent. In short, many credit Musk’s endorsements for transforming Dogecoin from an internet gag into a major memecoin, driving its adoption among everyday crypto investors.

Personal Investments and Holdings

What does Musk actually own? Publicly, Elon Musk’s crypto investments expand to his companies. Musk has revealed that his companies own cryptocurrencies as well. Tesla’s disclosure showed the $1.5B Bitcoin purchase on its balance sheet. At a July 2021 crypto conference (The “B Word”), he confirmed that in addition to Tesla’s Bitcoin, his aerospace firm, SpaceX, also holds some Bitcoin. He clarified, however, that neither Tesla nor SpaceX holds any Dogecoin.

As for Musk personally, he has said he holds a small basket of crypto. In that same July 2021 event, he told investors: “I personally own Bitcoin, Ethereum, and Dogecoin”. He made it clear that Dogecoin is his favorite, due to its memes and community.

He even joked in 2020 that crypto scammers on Twitter pushed him to buy some Bitcoin himself so he wouldn’t miss out. However, Musk has never revealed exact amounts or any major personal stakes (and some of these claims are based on his own tweets rather than verifiable records).

Importantly, Musk insists he is not trading these coins in a classic pump-and-dump fashion. On Clubhouse, he joked: “I might pump, but I don’t dump,” adding that he wants to see Bitcoin succeed. He has downplayed being a speculative trader, saying crypto to him is more like an interesting asset to hold than a short-term gambit.

Nonetheless, by aligning himself with Bitcoin and Dogecoin, he has effectively tied his personal brand to those currencies. Tesla’s willingness to acquire and hold digital assets for long-term financial strategy also suggests that Musk, through his companies, is positioned to profit from crypto’s ups and downs over time.

Tweets that Moved Markets

Elon Musk’s casual tweets often have very serious consequences for financial markets. As Reuters chronicled, his Twitter activity has repeatedly moved asset prices around the world. In cryptocurrency specifically, many iconic moments stand out. For example, on Dec. 20, 2020, he tweeted “One word: Doge,” causing Dogecoin to soar immediately.

On Jan. 29, 2021, he put “#bitcoin” in his Twitter bio, which drove Bitcoin up about 14% in a few hours. Two weeks later (Feb 4, 2021), he first tweeted “Doge” with a rocket emoji and then “Dogecoin is the people’s crypto,” events that together lifted Doge more than 60%.

There are also downsides. When Tesla stopped taking Bitcoin as payment on May 12, 2021, Musk tweeted that decision, and crypto markets tumbled as a result. Later in 2021, Musk famously hosted SNL and on-air dismissed Dogecoin as a “hustle,” which briefly sent Dogecoin crashing by roughly 30% in a day.

Even a single heart emoji tweet from Musk can shock markets. For instance, on June 4, 2021, he tweeted a broken-heart emoji with “#bitcoin,” and Bitcoin immediately dipped about 7%. Musk himself has acknowledged this power. In the February 2021 Reuters interview, he said, “I am a supporter of bitcoin,” and joked that his tweets can move markets, but he tries to be responsible.

Criticism and Market-Manipulation Concerns

Elon Musk’s crypto investments and flirtations have not been without controversy. Some critics accuse him of dangerously mixing jokes with market-moving commentary. For instance, a group of Dogecoin investors sued him and Tesla in 2022 for allegedly manipulating the Dogecoin market, claiming Musk used his Twitter blasts and publicity stunts to pump Doge’s price and then profit at their expense. That suit alleged he “drove up Dogecoin’s price more than 36,000%” and sold after such rallies.

However, U.S. courts have so far not upheld those manipulation claims. In August 2024, a federal judge dismissed a Dogecoin lawsuit with prejudice, ruling that Musk’s Dogecoin tweets  were “aspirational and puffery, not factual.” This means no reasonable investor could claim fraud based on them. An appeal of that dismissal was later dropped by the plaintiffs. In other words, the courts have largely concluded that Musk’s crypto-related quips amount to bold hype rather than actionable financial advice.

Musk himself downplays the idea that he’s giving real investment counsel. On Clubhouse and interviews, he often says his Dogecoin references are jokes. In early 2021, he quipped to fans, “Occasionally I make jokes about dogecoin, but they are really just meant to be jokes”. He seems to reject the notion that he leads market manipulation rings, instead claiming he’s simply expressing personal views or humor.

Legal/SEC Scrutiny Over Crypto Comments

Speculation about regulators eyeing Musk’s crypto antics has come and gone. In early 2021, there was a rumor that the U.S. Securities and Exchange Commission (SEC) might probe him over his Dogecoin tweets. Musk famously responded to this rumor by tweeting, “I hope they do! It would be awesome,” implying he had nothing to hide.

In reality, no official SEC enforcement against Musk for crypto has materialized. The SEC’s concern with him has historically centered on his equity and Tesla-related tweets like the infamous 2018 “funding secured” tweet about going private at $420. No similar crypto-related enforcement action has been taken.

On the civil side, as noted above, private lawsuits claiming fraud or market manipulation have been dismissed. The legal consensus so far is that his statements about crypto, however colorful, don’t meet the legal standard for securities fraud or insider trading. Even a lawsuit seeking $258 billion over Dogecoin was repeatedly amended and ultimately thrown out.

Broader Views on Blockchain’s Future

Beyond specific coins, what does Musk think about blockchain technology itself? He has expressed a mix of admiration and skepticism. He has praised blockchain’s ability to bypass traditional currency controls, describing crypto as a replacement for cash that links legal and illegal transactions. In 2019, he said fiat (paper) money is “going away” and crypto is a far better vehicle for value transfer. These statements suggest he sees blockchain as an important innovation in finance.

At the same time, Musk emphasizes practical considerations. His environmental concerns imply that any blockchain future must solve Bitcoin’s energy problem. He has often focused more on specific use-cases, the payments, store-of-value, than on abstract blockchain potential. For example, he repeatedly highlights crypto’s role in consumer transactions and wealth storage, rather than touting blockchain platforms.

Interestingly, Musk has dipped into blockchain-inspired ideas beyond currency. He once raised the idea of using blockchain for voting technology (albeit in a lighthearted tweet). More substantively, he co-founded X.com in 1999, an early online banking/finance venture that preceded PayPal and whose ethos resembles cryptocurrency’s goal of decentralized payments.

However, has not spearheaded any new blockchain network himself. His focus seems to be on how existing crypto can fit into his companies, rather than on building new blockchain innovations.

In summary, Musk’s view of blockchain is that of a smart technologist. He respects crypto’s clever design and potential to disrupt finance, but he also zeroes in on its real-world constraints. He is essentially betting on those digital assets that combine his futuristic vision with current utility while demanding progress on issues like climate impact.

Conclusion: Musk’s Real Crypto Legacy

Elon Musk’s true legacy in cryptocurrency is likely mixed. On one hand, he indisputably raised crypto’s profile. Millions of new investors and the media have tuned in to Bitcoin and Dogecoin because of his tweets and business decisions. He forced Wall Street, governments, and everyday people to take digital currencies seriously. Tesla’s early Bitcoin investment and Musk’s high-profile endorsements gave crypto an image of legitimacy it would not otherwise have had.

On the other hand, Musk’s influence depends on social media chatter more than on technical breakthroughs. The Crypto prices he talks about often fall back later, and critics argue his antics injected excess volatility into the market. Unlike a developer or advocate who strengthens blockchain infrastructure, his crypto contributions have mostly been promotional. As one analyst put it, Musk’s tweets exemplify “crypto’s continued penetration of corporate culture.” However, they do not necessarily advance the technology itself.

For investors and observers, Musk’s legacy will boil down to this: he was a powerful amplifier and occasional user of crypto, not its inventor or thoughtful planner. He invested heavily through his companies in Bitcoin and encouraged Dogecoin, but he did so with a business mind, not as a true believer in endless crypto speculation. His decision to sell portions of Bitcoin and insist on greener mining practices shows he views crypto as only one element of Tesla’s broader strategy. Meanwhile, his playful approach suggests he values cryptocurrency as much for its cultural impact as for its financial potential.