Tesla's Bitcoin Holdings May Rise as Musk Criticizes Spending Bill

Elon Musk's recent public statements have sparked renewed speculation about Tesla's potential increase in Bitcoin holdings. Musk's outspoken criticism of a controversial Republican-backed spending bill has drawn attention to his stance on cryptocurrency, particularly Bitcoin. This has led to discussions about whether Tesla, the electric vehicle company led by Musk, might be considering acquiring more Bitcoin.

John Deaton, a prominent advocate for XRP, has suggested that Musk's recent public outburst could be a catalyst for Tesla to buy more Bitcoin. Deaton's comments came in the wake of Musk's vocal opposition to the spending bill, which he described as a "walking billboard and advertisement for buying Bitcoin." Deaton's prediction aligns with the broader sentiment that Musk's public statements often influence market trends and corporate strategies.

Musk's history with Bitcoin is well-documented. In early 2021, Tesla made headlines with a significant investment of $1.5 billion in Bitcoin. This move was seen as a bold endorsement of cryptocurrency by one of the world's most influential business leaders. Since then, Tesla's Bitcoin holdings have been a subject of ongoing interest and speculation. As of May 2025, Tesla is reported to hold approximately 11,509 BTC, valued at up to $1.2 billion based on current prices.

The potential for Tesla to increase its Bitcoin holdings comes at a time when inflation concerns are on the rise. Some analysts have suggested that companies like Tesla might turn to Bitcoin as a hedge against inflation, given the cryptocurrency's perceived value as a store of wealth. Musk's recent comments about Bitcoin's potential to skyrocket by 50% further fuel this speculation. This prediction echoes the significant price increase that Bitcoin experienced in 2021 following Tesla's initial investment.

Musk's acquisition of Twitter has also added another layer of complexity to the situation. Since taking control of the social media platform, Musk has been vocal about his views on various topics, including cryptocurrency. His public statements and actions on Twitter have the potential to influence market sentiment and corporate strategies, making his stance on Bitcoin a closely watched issue.

Musk himself didn’t hold back, labeling the bill a “disgusting abomination.” Senator Rand Paul also agreed with Musk, highlighting concerns about an additional $5 trillion in debt and wasteful government spending. Though the bill still faces significant hurdles in the Senate, its potential to worsen inflation has raised alarm bells even among traditional economists. Notably, gold advocate Peter Schiff warned the bill would drive inflation higher by deepening deficits and weakening the dollar.

Adding to that, Representative Marjorie Taylor Greene raised an issue about a provision, apparently on pages 278-279 of the bill, that would prevent states from regulating Artificial Intelligence (AI) for 10 years. She’s concerned this infringes on states’ rights and gives too much control over AI to the federal government, especially when the full capabilities of AI aren’t yet understood.