Will Musk’s America Party Embrace Bitcoin as a Core Asset?

Tech billionaire Elon Musk has announced the formation of a new political party called the American Party, which would embrace Bitcoin (BTC). It aims to give people their freedom back in a ‘return to reason’.

The announcement for the new party came late last week and marks the latest turn in the dispute between Republican President Donald Trump and the CEO of Tesla (TSLA +2.71%) and SpaceX.

Trump slammed the move on his platform, Truth Social, calling the political party “ridiculous,” while referring to Musk as a “trainwreck.”

He added that Musk had gone “completely off the rails,” and that a third political party has never achieved success in the history of the nation. “The one thing Third Parties are good for is the creation of complete and total disruption and chaos,” wrote Trump.

The Breakup: From Closest Allies to Political Enemies

Once deeply connected, Musk’s relationship with the former advisor and one of the closest allies to the U.S. President has since undergone a significant deterioration, marked by political disagreements, diverging priorities, and public fights.

The relationship began on a happy note with Musk financing Trump’s Presidential campaign. He reportedly spent as much as $288 million to help elect Trump and allied Republicans, making him the largest individual political donor of the 2024 election. It even made him the largest individual political donor in at least a decade and a half outside of candidates funding their own campaigns.

“The people of America gave @realDonaldTrump a crystal clear mandate for change tonight,” Musk wrote in one of his many tweets on his social media platform X to celebrate Trump’s victory in November 2024.

Interestingly, this has been despite Trump being openly hostile to electric vehicles (EVs), saying they are very expensive, have limited range, and will destroy jobs and the American auto industry. 

He actually vowed to end “Biden’s EV mandate,” referring to the Biden administration providing substantial government support for building as well as buying EVs. This includes billions of dollars in loans to encourage carmakers to invest in factories to build EVs and batteries in the US and a $7,500 tax credit to many electric car buyers.

Musk’s electric car maker Tesla is among the companies that receive substantial government support. For instance, in Q1 of 2025, Tesla reported $595 million from environmental regulatory credits, which increased from $432 million in Q1 of 2024 and prevented it from losing money on automotive sales. The company receives revenue from the credits for selling fully electric vehicles.

So, despite all this, Musk actively supported Trump, which earned him a key place in the Trump administration, specifically in the Department of Government Efficiency (DOGE), which was tasked with reducing the US government spending and cutting jobs.

Doge isn’t an official government department but rather an advisory body created by an executive order signed by Trump. Its mission, per Musk, was to put a stop to the “tyranny of the bureaucracy” in addition to saving taxpayers’ money and reducing US national debt, which stands at $36.22 trillion.

However, the recently passed bill, which is termed “One Big Beautiful Bill,” would raise the debt ceiling by $5 trillion, going beyond the $4 trillion outlined in the initial version that was passed by the House back in May.

The bill is actually the key reason for the ongoing tiff between Trump and Musk, who called it a “disgusting abomination.” When asked on his social media platform as to what made him turn from a Trump supporter to an attacker, Musk said it was “increasing the deficit from an already insane” level, which will “bankrupt the country.”

Trump has also threatened to cut off all the subsidies to Musk’s companies. “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” wrote Trump last month, to which Musk replied, “Go ahead, make my day.”

At the time, Musk suggested that SpaceX would decommission the spacecraft that NASA uses to transport cargo and crew to the International Space Station (ISS). He also said that Trump was “in the Epstein files. That is the real reason they have not been made public.”

This week, the US Department of Justice (DOJ) concluded its investigation into Jeffrey Epstein’s sex trafficking case, saying that there’s no “client list”, which Musk mocked. The Tesla CEO, who owns X (formerly known as Twitter), has also said that: “Without me, Trump would have lost the election.” 

The Formation: The America Party is Born

It all officially started on the Fourth of July, which marks Independence Day in the United States, commemorating the passage of the Declaration of Independence by the Continental Congress in 1776.

On July 4th, Musk took to X and asked his followers whether a new U.S. political party should be created. His post received close to 1.25 million votes, with the majority voting in favor of creating the America Party.

“One way to execute on this would be to laser-focus on just 2 or 3 Senate seats and 8 to 10 House districts. Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people.”

– Musk noted in a follow-up tweet

The very same day, Trump signed his “big, beautiful” tax bill that Musk vehemently opposes. A couple of weeks ago, Musk said that if the “insane” bill passes, he would form a new political party and would try and unseat those who supported it. He wrote the following on X:

“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth.”

In his call for a new political party at the time, Musk said the massive spending by the bill indicates that “we live in a one-party country – the PORKY PIG PARTY!!” and that we need a new one that “actually cares about the people.”

After running the poll, Musk declared this past Saturday in a post that “Today, the America Party is formed to give you back your freedom.”

“By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.” 

With reference to ancient history, Musk continued with this post:

“The way we’re going to crack the uniparty system is by using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra: Extremely concentrated force at a precise location on the battlefield.”

Epaminondas was a Greek general who defeated the Spartans at the Battle of Leuctra to lead the Ancient Greek city-state of Thebes out of their subjugation.

Later in the day, investment firm Azoria Partners announced its decision to postpone the listing of a Tesla exchange-traded fund (ETF). Azoria CEO James Fishback asked the company’s board to clarify Musk’s political ambitions. He also said the new party undermines the confidence Tesla shareholders had that he would be focusing more on his automobile company after leaving his role in the government in May.

Musk left the Trump administration and his role in Doge, which has faced legal challenges over the scope of its work. The team has also been criticized for a lack of transparency and failure to reach savings anywhere near the goals they initially stated.

Focusing on politics rather than his company, along with the ongoing tiff with President Trump, has been negatively impacting Tesla’s share prices. 

The $946.7 billion market cap Tesla’s shares are currently trading at just above $297, down 27.21% YTD. TSLA shares hit an all-time high of above $488 in Dec. 2024 in the light of Trump’s victory, but have since lost more than 39% of their value. In April, TSLA prices actually fell below $215.

Despite the negative market performance, this hasn’t hurt Musk’s world’s richest person status with his net worth currently sitting above $393 billion.

While Musk has deep pockets to fuel his political career, it may not be enough to break the Republican-Democratic duopoly that has been dominating American political space for more than a century and a half.

The Mission: The Bitcoin Blueprint

The “One Big Beautiful Bill Act” has been officially signed into law as a massive package of tax and spending cuts. It became the law a day after the bill was narrowly approved by the House of Representatives, which is controlled by Republicans.

The bill will make Trump’s 2017 tax cuts permanent, fund his immigration crackdown, offer permanent relief for small businesses, and provide historic funding for national security.

Calling it a “sweeping legislative triumph that combines the largest tax cuts in history with landmark investments in America’s future and defense,” the official White House statement says, “This bill unleashes economic prosperity and empowers every American while strengthening our nation’s defenses and boldly looking to the future.” And with this move, the America Party has been born.

Musk, who has US citizenship, however, cannot be president due to being born in South Africa, which makes him ineligible as per the US Constitution.

According to a response Musk made to a user’s question, “Midterms or 2028”? The America Party is expected to start contesting elections in the 2026 midterm cycle, focusing on House and Senate races.

While it can’t be said yet if Musk can actually win any seats, this can certainly rattle Republicans, who are already worried that the ongoing feud between the world’s richest man and the world’s most powerful man could prevent them from protecting their majority in midterm congressional elections next year.

Currently, the America Party has no registration with the Federal Election Commission, official documents, or anything else. Musk does have some ideas in mind, though, which include keeping the debt low, upgrading the military, and pushing technology.

He would also be taking the help of Bitcoin (BTC +0.15%), with Musk announcing that his political party will support BTC.

“Fiat is hopeless, so yes,” Musk said in response to an X user asking if his political party, which is challenging the two-party system in the U.S., would be interested in the leading cryptocurrency. 

So, the $2 trillion market cap Bitcoin, which as of writing is trading at $108,800, will serve as the main financial asset of his new political party, reflecting a growing distrust in traditional fiat currencies, which constantly lose value due to inflation.

Fiat money, like the US dollar, is issued and regulated by the government. It derives its value from the trust that the people have in the government and is used by central banks to regulate the money supply in the economy, which allows the authorities to manipulate interest rates, control credit availability in the market, and implement inflation control measures.

Unlike fiat currency, Bitcoin operates on a decentralized blockchain network and works trustlessly without the need for intermediaries.

It has a capped supply of 21 million, which means there will only ever be just this much Bitcoin and not a single more. This is in complete contrast to fiat currencies, whose supply is controlled by government and central banks and can be printed in unlimited quantities, which leads to inflation and a decrease in your money’s purchasing power.

In addition to this, Bitcoin transactions are transparent and secured by cryptographic algorithms, though volatility and scalability are major challenges with the digital asset. 

The launch of Spot Bitcoin ETFs in 2024, meanwhile, allows investors to gain exposure to BTC without having to own the crypto asset itself, making it easier for institutional investors to participate in the market in a compliant manner.

Latest Bitcoin (BTC) News and Developments

The Weapon: Real Disruption with Digital Assets

So, Bitcoin is all set to become the primary asset of the new party that aims to change the political landscape of the U.S., which makes perfect sense given that BTC has been revolutionizing the financial sector. The crypto king, after all, has no central authority in control or any political affiliations.

Moreover, Musk is no stranger to BTC as Tesla was among the early adopters of Bitcoin and is still holding the decentralized, borderless digital asset with a fixed supply in its treasury. 

It was back in 2021, under his leadership, that Tesla first ventured into Bitcoin. The electric car maker bought $1.5 billion worth of BTC, becoming one of the first publicly traded companies to hold it in its treasury reserves, a move that has since become widely popular.

At the time, Tesla said that it would also start accepting payments in BTC in exchange for its products, and though it did accept it at one point, the company soon removed the option.

As for its Bitcoin holdings, Tesla still stands among the top ten public Bitcoin holders, with 11,509 BTC worth approximately $1.26 billion on its balance sheet. 

Interestingly, Tesla has sold the majority of its Bitcoin holdings. It originally held just over 43,000 BTC, only to sell 75% of it in 2022, that too at a loss, at an average price of about $20,000, which was $18K less than the price the company originally paid for its BTC. If Tesla had kept its original investment, its Bitcoin holdings would have been worth about $4.6 billion today.

Musk’s space technology company, SpaceX, also holds 8,285 BTC worth over $900 million in its corporate treasury. 

A policy change in how companies account for crypto actually helped strengthen Tesla’s financial position. For instance, Tesla reported a carrying value of a whopping $1.08 billion in digital assets in the December period last year, a massive jump from $184 million it reported in multiple quarters prior to that.

This is the result of the Financial Accounting Standards Board (FASB) mandating that corporate digital asset holdings will be marked to market starting this year. Before this, companies had to report their BTC holdings at their lowest ownership value, regardless of price gain.

Bitcoin price has rallied more than 60% since Trump won the Nov. 2024 elections, hitting a new ATH at almost $112,000 in May 2025.

Besides Bitcoin, Musk is also a vocal supporter of the popular meme coin Dogecoin (DOGE), which has a market cap of $25.7 billion as it trades at $0.1714, and the Department of Government Efficiency was an homage to this cryptocurrency.

Overall, with the America Party, Musk is starting a movement with the revolutionary Bitcoin as its primary asset. This crypto-centric approach of the America Party could help accelerate the mainstream adoption of digital assets.

While it remains to be seen if this move will be a success, it certainly exposes how fragile the old system has become and dares to do something about it.