Fidelity Increases Valuation of its X (Twitter) Stake by 32%

Fidelity Increases Valuation of X Holdings

According to a report published by Axios, Fidelity Investments adjusted the assessed value of its investments in Elon Musk’s X (previously known as Twitter) upwards by 32.37% during October.

Despite this recent increase, Fidelity’s current valuation of the company remains 72% lower than the $44 billion acquisition price paid by Musk in 2022.

Connection to xAI Investment

Axios suggests this valuation adjustment is likely linked to xAI. Fidelity participated in the $6 billion Series B funding round for the AI startup founded by Musk earlier in the year.

Furthermore, the firm also increased the valuation of its xAI shares by a substantial 70% in October.

xAI’s chatbot, Grok, was developed utilizing data from X and is accessible to subscribers of the platform.

It is also speculated that X itself may hold a considerable equity position within xAI.

Impact of Recent Events

This reported markup occurred prior to the November presidential election result, where Donald Trump emerged victorious.

Trump has publicly stated his intention to appoint Musk to head a new Department of Government Efficiency.

The election outcome triggered a surge in user activity on X.

Concurrently, a noticeable trend of users migrating to alternative platforms, such as Bluesky, was also observed.

This shift in user base suggests a potential impact from the political climate and platform changes.