According to Cointelegraph, Tesla CEO and tech entrepreneur Elon Musk has announced that his newly established political entity, the America Party, will accept Bitcoin as a form of support. Musk confirmed this decision in response to a query on social media, stating, "Fiat is hopeless, so yes," when asked if his party would embrace the cryptocurrency.
Elon Musk's connection with Bitcoin is well-documented, as Tesla was among the early adopters of the digital currency, incorporating it into its financial reserves. Under Musk's leadership, Tesla acquired $1.5 billion worth of Bitcoin in early 2021, positioning itself as one of the pioneering publicly traded companies to hold Bitcoin in its treasury. Presently, Tesla possesses 11,509 BTC, valued at approximately $1.26 billion, making it the ninth-largest publicly traded company with Bitcoin holdings, as reported by Bitbo. Musk has also been a vocal supporter of Dogecoin, influencing its market value through his social media activity. Samson Mow, founder of Jan3, suggested that Musk's embrace of Bitcoin could provide him with a strategic advantage over U.S. President Donald Trump in their ongoing rivalry. Mow proposed that Tesla should resume accepting Bitcoin as payment and that SpaceX, another Musk-led venture, should offer discounts for Bitcoin transactions.
In 2024, Musk initially dismissed the idea of utilizing the Bitcoin network for transactions on Mars, but later considered the potential of a localized Lightning Network to address transaction speed issues. Despite his current stance, Musk has not always been a proponent of Bitcoin. In 2021, he remarked that Bitcoin's price was "too high," which contributed to a decline in its market value.
The relationship between Musk and U.S. President Donald Trump has soured over Trump's "One Big Beautiful Bill," which Musk criticized as "utterly insane and destructive," arguing that it would lead to job losses and strategic harm to the United States. The bill is projected to increase the national debt by $3.3 trillion over the next decade. Musk questioned the logic behind Trump's Debt Optimization and Growth Enhancement (DOGE) initiative, which aims to reduce national debt, while simultaneously increasing it by trillions. Musk hinted at the necessity for a new political party that prioritizes the welfare of the people.
On Sunday, Musk announced the formation of the America Party following a poll in which over 1.24 million participants voted, with nearly two-thirds supporting the creation of the new party. Musk criticized the current political landscape, stating, "When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy." In response, President Trump expressed concern that Musk's new party could divide the Republican vote in the upcoming 2026 midterm elections.
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