The World’s First Trillionaire

What a fantastic day!

To see SpaceX go public is such a triumph of human ingenuity, ragged determination, and the incredible vision and persistence to attempt to do things thought to be impossible.

I can’t help but be reminded of all the haters, the decels, and even the NASA Apollo astronauts who were so disparaging of Elon Musk and SpaceX. As Seneca said, The best revenge is to not be like them.

Musk and his teams didn’t allow that nonsense to bother them. They used it as fuel. They proved them wrong. And they delivered.

Elon Musk is now a trillionaire – the world’s first, and rightfully so.

This should be celebrated.

Musk has defined an entire industry of electric vehicles. He developed the most advanced and safest self-driving technology the world has ever seen, which will eventually save a million lives a year. He created clean energy production through residential solar panels. He helps those who are paraplegic speak and work with computers just using their thoughts through Neuralink. He removes congestion in cities with tunneling technology through the Boring Company. He created reusable rockets at SpaceX, which has enabled the entire space economy. He’s enabling artificial general intelligence at xAI. And perhaps the greatest gift of all has been restoring freedom of speech at X.

Almost his entire net worth is tied up in equity in the companies that he has built. He’s not living a lavish and leisurely lifestyle. Musk works nearly every waking hour to accomplish as much as he can. And his guiding purpose is to make the human race a multi-planetary species so that we can expand human consciousness among the stars – and have a backup plan in the event that something horrible happens here on Earth.

What a gift to humanity.

We need Musk to stay healthy and productive for as long as possible. Just imagine what breakthroughs he will bring in the next 20 years.

So yes, we should celebrate his success and the success of SpaceX.

The human race is transforming into a world of abundance. It’s within our reach as long as we fight for freedom and maintain a regulatory environment that is pro-innovation, pro-growth, pro-energy, and supports the rule of law.

We have so much to look forward to.

Elon’s Wish List

Hey Jeff, so what do you think Elon is going to do with the $26B/yr rental income he’s going to pull in renting Colossus I to Anthropic and Google? Does this revenue sweeten the SpaceX IPO at all for you? I put in to buy 20 shares for next week’s offering. Cheers.

– Gary D.

Hello, Gary,

I’m glad you wrote in about this topic. It’s an interesting one that most aren’t aware of.

For everyone’s benefit, the “$26B/yr rental income” refers to two recently announced deals by SpaceX:

• Anthropic signed up to spend $1.25 billion a month through May 2029 to gain access to all the capacity on the SpaceX Colossus I data center
• Google signed up to spend $920 million a month for capacity on the Colossus II data center starting October 2026 through June 2029

Combined, these two deals will bring up to $26 billion a year of cloud services revenue to SpaceX.

This is so impressive. xAI went from being considered too far behind to even have a chance at catching up with the rest of the frontier AI model field… to demonstrating best-in-class performance across most AI benchmarks in less than 18 months.

SpaceX/xAI built out massive AI data centers in a fraction of the time as the rest of the industry. Even NVIDIA CEO Jensen Huang said he has never seen anything like it.

SpaceX was more efficient and productive than all of the major cloud service providers and AI companies. And SpaceX is also the most efficient in training its own AI models, which is why it has the ability to lease out compute to Anthropic and Google. And how ironic that Google is leasing computational resources from SpaceX, considering it is one of the largest cloud service providers in the world.

Back of the envelope, my estimation is that SpaceX has spent $25–30 billion to build out Colossus I and Colossus II. So, generating $26 billion in annual revenue is pretty incredible. This is a phenomenal business in itself.

However, SpaceX’s goal isn’t to just sit still and pull in the profits. SpaceX will continue to invest heavily in building out more AI data center capacity, the Terafab, and of course, executing on the engineering and vision for the Starship.

So yes, long term, this is a great development for SpaceX and a very smart business. It’s also very smart from an antitrust perspective. SpaceX is demonstrating that it will lease out its own capacity to direct competitors in artificial intelligence and cloud services like Anthropic and Google.

We should expect a lot of volatility in SpaceX’s share price, along the lines of how Tesla trades. Because this is an Elon Musk company, it will trade at a premium valuation, so there will be a lot of hemming and hawing over whether SpaceX is overvalued or undervalued.

Putting today’s valuation aside, long-term, I am certain that SpaceX will eventually be worth tens of trillions of dollars.

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Your Absolute Last Chance: Countdown to the SpaceX IPO

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Can We Really Trust Blockchain Technology?

I just read an article by MN Gordon. Maybe he’s an alarmist. He refers to the idea of restricting our behavior through the government control of money and people through stablecoins.

He also says the struggle behind the new legislation in Congress is about the ability of banks to keep using deposits almost for free (and take advantage of depositors) so they can continue to make a profit on the spread or lend it out in our fractional reserve system. It also allows the government an endless stream of backed cash in the form of Treasury bills for continued overspending. It’s the way the bills are written that allows this.

It will be sold on the basis of convenience, lower transaction fees, and implemented at a time of crisis like a recession or other calamity. The article also comments that the only recourse to avoid this situation will be to have assets off the electronic grid like precious metals. In order to be free, we would need a black market and break the law.

There are a lot of machines and systems I use that I don’t fully understand, but they function well and allow me a better life. I don’t know if blockchain will be one of them. It scares the hell out of me.

– Thomas K.

Hello, Thomas, I’m not familiar with the article that you reference, but I can provide some context on the points that you share.

No, blockchain technology isn’t a force for taking away any freedoms, nor are stablecoins. Just like pretty much any technology, people can choose to use it for good or malicious purposes.

During the Biden administration, a cabal of people wanted to implement a central bank-controlled digital wallet and a central bank digital currency (CBDC) for the explicit purpose of restricting and controlling our behavior – and for the redistribution of wealth from the working class (us taxpayers) to those that they deemed suitable to receive payments.

There is also truth to your comments above about the banks wanting to “keep using deposits almost for free (and take advantage of depositors).” This is exactly what is happening today. The spread on what banks pay us for deposits versus what they receive from the U.S. government in U.S. Treasuries is arguably criminal.

And the only reason that the digital assets market structure bill – the CLARITY Act – hasn’t already become law is because the banks are trying to stop non-bank institutions like Coinbase or Kraken from offering competitive interest rate payments on stablecoin deposits. They are trying to avoid consumers moving their capital to where it will be treated better.

From my perspective, this should be a free market. Digital asset exchanges should be able to offer yield on stablecoin deposits. It would benefit consumers. And that’s what we’re fighting for. Brownstone Research is a long-standing member of The Digital Chamber, and we help advocate for fair and reasonable regulations for digital assets, consumers, and investors.

At the moment, the current administration is pro-digital assets and extremely supportive of the new regulatory framework that the industry is working so hard to put in place. Under this regulatory environment, this technology can be used to reduce friction and dramatically lower transaction fees for consumers (i.e., they want to use this technology for the benefit of Americans and, for that matter, the rest of the world).

As for stablecoins and overspending, this isn’t a technology issue. This is a government issue. Whether stablecoins exist or not, any government can “print money” and create massive deficits.

I’m not happy at all with the size of the current deficit and want to see it shrink by at least $1 trillion during the next 24 months. If we’ve learned anything over the last 12 months, it’s that there has been more than $1 trillion of systemic fraud that has robbed honest, hardworking taxpayers of their money. It is so refreshing to see the current task force on fraud making so much progress right now. It’s time to shut all the fraud down, eliminate wasteful spending, and ultimately get back to a balanced budget.

Crypto All-Time Highs

Congratulations on realizing your 2026 New Year’s prediction for all-time highs on AMD and NVDA, among others, in 2026. It already happened! It is marvelous.

But I’m concerned about your crypto services… You predicted BTC would reach 130K and ETH over 5K by 2026. Given recent market developments and BTC’s dramatic failure to act as “digital gold,” do you still think 130K and 5K would happen in 2026?

– Nian Y.

Hi, Nian,

Thanks for that. I always take heat for so many of my predictions. Many subscribers think that I am crazy, time and again, for my “outlandish” predictions. And yet here we are… right again. That makes me very happy because it means that my subscribers are increasing their wealth and taking steps toward a wonderful retirement.

And you’re right. Digital assets have had a tough run since October last year. The culprit has been the delay in the passing of the market structure bill for digital assets – the CLARITY Act. I mention this because my predictions about BTC and ETH are premised on the CLARITY Act passing this year. If it doesn’t pass, then I don’t expect to hit those predicted targets.

I still have optimism. The wind blows differently every day in Washington, D.C., over the digital assets legislation. There are so many hard-working, smart people doing their very best to push this bill over the line this summer. Something as large, complex, and transformative as the CLARITY Act doesn’t come easy. I am confident it will happen; I just can’t promise a date.

It’s worth noting that all asset classes go through bullish and bearish cycles. No asset class has ever been in a perpetual bull market. This is precisely why I produce a wide range of investment research on different asset classes and investment/trading strategies. My goal is to always have valuable investment research regardless of what kind of market we’re in. That’s exactly why we have a product like Deep Access, which enables subscribers to profit from volatility – and even in horrible bear market conditions.

Brownstone Research is the largest growth asset investment research firm in the world. This is what we specialize in. That’s why it is critical for us to publish investment/trading research on digital assets in bull or bear markets. And once the CLARITY Act passes – and it will – the digital asset markets will take off.

Jeff

P.S. I’ve made some big calls in my career. Bitcoin at $240 (up over 25,000%)… Tesla at $20 (up over 2,000%)… NVIDIA at a split-adjusted 66¢ (up over 32,000%)…

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