Elon Musk has linked Bitcoin's energy foundation to the world's accelerating artificial intelligence (AI) boom, arguing that energy not fiat money is the ultimate store of value.
Responding to a post by financial outlet ZeroHedge on Oct. 13, Musk agreed that the ongoing global race to dominate AI will drive massive spending and potential currency debasement.
"True," Musk wrote on X (formerly Twitter).
"That is why Bitcoin is based on energy: you can issue fake fiat currency, and every government in history has done so, but it is impossible to fake energy."
ZeroHedge had earlier noted that the "money is not the problem" in the AI race, suggesting that future capital expenditure (capex) will be underwritten by governments in the U.S. and China.
"If you want to know why gold, silver, and Bitcoin are soaring, it's the debasement to fund the AI arms race," ZeroHedge posted. "But you can't print energy."
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Tesla purchases $1.5B in Bitcoin
In February 2021, Tesla announced it had purchased $1.5 billion worth of Bitcoin and would begin accepting it as payment for vehicles. Musk hailed the cryptocurrency's potential as "a good thing" and positioned Tesla as a forward-looking company embracing decentralized finance.
Within months, however, that optimism cooled. By May 2021, Musk announced Tesla would suspend Bitcoin payments, citing environmental concerns about the cryptocurrency's proof-of-work (PoW) mining model, which consumes significant energy to secure the network.
"We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions," Musk said at the time.
Tesla dumps 75% Bitcoin holdings
In July 2022, Tesla quietly dumped roughly 75% of its Bitcoin holdings, worth about $936 million, during a period of macroeconomic uncertainty and market stress. The company said the sale was made to "maximize liquidity" amid COVID-related shutdowns in China, but the decision effectively ended Tesla's brief tenure as a major Bitcoin holder.
Despite this, Musk never entirely abandoned Bitcoin. He has repeatedly described himself as a supporter of "crypto in principle", often distinguishing between its technological merits and its environmental footprint.
He's also praised Dogecoin, calling it "the people's crypto," and has integrated DOGE payments into Tesla's online store for select merchandise.
As of the latest data from Arkham Intelligence, Tesla holds approximately 11,509 BTC, valued at around $1.29 billion at current market prices.
Related: Elon Musk and Tesla Still Hold Bitcoin
This story was originally reported by TheStreet on Oct 14, 2025, where it first appeared in the Technology News section. Add TheStreet as a Preferred Source by clicking here.
