• Elon Musk lost $200 billion in December 2022, making him the first person to ever lose such an amount.
• Tesla lost $783 million to Bitcoin volatility in 2022.
• The total loss from Tesla’s BTC investment was 0.39% of Musk’s loss.
In December 2022, Elon Musk became the first person ever to lose $200 billion, according to Bloomberg News. This monumental loss was largely due to the significant drop in the value of Tesla, Musk’s electric car company, which fell by 65% in the same year. This massive loss can be attributed to a number of factors, including Musk’s decision to invest heavily in Twitter, which cost him $40 billion, and the volatility of Bitcoin (BTC) investments.
Tesla’s Bitcoin investment in February 2022 was a key factor in Musk’s losses. The company purchased 43,200 BTC for $1.5 billion, which equated to $716,368,320 at the time. However, due to the volatility of Bitcoin, Tesla’s total loss from its BTC investment was $873,631,680. This amounted to 0.39% of Musk’s overall $200 billion loss, demonstrating the impact of Bitcoin volatility on Musk’s financial losses.
Musk’s loss, however, has not deterred him from continuing to invest in Bitcoin and other cryptocurrency investments. In fact, Musk has recently become a vocal proponent of the digital asset, even going so far as to tweet about his support for the cryptocurrency. His enthusiasm for the asset class has led to a surge in the price of Bitcoin and other cryptocurrencies, with Dogecoin (DOGE) rising over 800% in the space of a few days.
Despite his losses, Musk remains a billionaire and has now been replaced as the world’s richest person by LVMH’s Bernard Arnault. Musk’s current estimated wealth stands at $137 billion, a substantial amount that is likely to increase as Bitcoin and other cryptocurrencies continue to rise in popularity.