Elon Musk Says There's 'Some Merit' in Bitcoin and He Has a 'Soft Spot' for Dogecoin

Tesla CEO Elon Musk has an on-again-off-again relationship with cryptocurrency.

This week, he seems favorably inclined towards Bitcoin, announcing that he sees "some merit" in it and unspecified other cryptocurrencies, and reiterating his enthusiasm for the dog-themed meme coin Dogecoin.

Speaking at an X Takeover event, Musk said that, "I do think there's some merit in Bitcoin and maybe some of the other crypto," adding, "I sort of have a soft spot for Dogecoin, because I just like dogs and memes."

In a discussion that focused on the use of his image to promote crypto scams, Musk said that, "I'm not going to be promoting crypto—at most, in a joking way." He added that, "If you see me pumping crypto, it's not me."

Scams using the Tesla CEO's image have raked in hundreds of thousands of dollars in crypto from unsuspecting victims, evolving in sophistication from hacks of his Twitter account to the use of his face in fake adverts, and deepfake videos.

The proliferation of spam and scam bots was a key factor in Musk's decision to buy Twitter, which he subsequently rebranded as X. In April, he announced a "system purge" of bots and trolls on the platform, threatening to bring "the full force of the law to bear upon them."

Speaking at X Takeover, Musk warned Twitter users to be "cautious" of scams, adding that upon encountering any crypto-related promotions: "I would double check whether that is real."

Elon Musk's Tesla Still Holds $387 Million in Bitcoin

Although Tesla didn’t mention Bitcoin in its most recent quarterly earnings report, analysts have concluded that Tesla Inc.'s (TSLA) Bitcoin holdings remained steady in the last quarter of 2023. The electric car manufacturer's cryptocurrency assets are valued at approximately $387 million at current prices, with over 9,720 BTC in its possession, according to Bitcoin Treasuries, an aggregator that follows well-known BTC wallets in the business world. Source: Bitcoin Treasuries Tesla's Bitcoin jou...

Musk has gone back and forth over cryptocurrency. In 2021, he announced a short-lived initiative for Tesla to accept Bitcoin as payment for its cars. The company continues to hold Bitcoin as part of its corporate treasury.

The Tesla CEO has also been an enthusiastic advocate of Dogecoin, suggesting that "at some point" the EV manufacturer should accept it as payment.

Edited by Stacy Elliott.