Elon Musk’s ‘America Party’ To Accept Bitcoin – Tesla CEO Says ‘Fiat Is Hopeless’

Tech entrepreneur and billionaire Elon Musk confirmed that his newly formed political party – the America Party – will accept Bitcoin (BTC).  

In a post on social media platform X, Musk replied, “Fiat is hopeless, so yes,” to a user asking if the party would accept the apex cryptocurrency. 

Meanwhile, Tesla (TSLA) shares were down more than 7% in pre-market trade on Monday after Musk announced plans to form the America Party. The company already holds Bitcoin in its coffers and was one of the early adopters, integrating cryptocurrency into its treasury reserves. 

Tesla is the eighth-largest corporate holder of Bitcoin with 11,509 BTC on its balance sheet, worth approximately $1.25 billion at Bitcoin’s current price, according to Bitcoin Treasuries data. It even announced it would accept Bitcoin payments for purchasing Tesla cars, but discontinued that in 2021, citing environmental concerns.

However, unlike Michael Saylor’s Strategy (MSTR) – touted for its Bitcoin treasury strategy – which has gained nearly 35% this year and more than 200% over the past 12 months, Tesla’s stock has fallen nearly 20% this year, with gains of just 34% over the past 12 months.

Musk has also been a strong proponent of Dogecoin (DOGE), which was also seen rallying during pre-market hours on Monday. Dogecoin’s price had gained 3.8% in the last 24 hours to trade at around $0.1711 on Monday morning. Despite the meme coin’s climb, retail sentiment on Stocktwits around Dogecoin remained in ‘bearish’ territory over the past 24 hours.

Meanwhile, Bitcoin’s price was up 0.6% in U.S. pre-market hours, trading at around $108,700. The cryptocurrency is trading only 2.8% below its all-time high of nearly $112,000 seen in May. Retail sentiment on Stocktwits around Bitcoin remained in ‘neutral’ territory over the past 24 hours but witnessed an improvement from ‘bearish’ a week ago.

Crypto analysts believe that Bitcoin could be Musk’s ‘Trump’-card to gain an edge in his feud with the U.S. President. 

“The best way for Elon to get back at Trump is by full porting Bitcoin,” crypto analyst and currently leading strategy at Keyrock, Will Clemente, said in a post on X. 

JAN3 founder and CEO Samson Mow also echoed a similar sentiment in his X post, stating, “@elonmusk, it’s time to go all in on Bitcoin.”

The feud between Musk and U.S. President Donald Trump has been ongoing for over a month since the former left office as an adviser to Trump and then called his tax bill a “disgusting abomination.”

After Musk announced the formation of his political party in the most recent flare-up between the two, Trump hit back, stating that Musk is going “off the rails.”

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