Elon Musk’s X valuation rebounds to $44 billion as company turns losses into profits.

In an early trade this month, investors valued Elon Musk’s social media platform, X, at $44 billion, the same price at which Musk purchased the website in 2022.

According to the Financial Times, X is in negotiations to raise funds from investors at a valuation of $44 billion. This is the first time since Musk acquired and privatized the website that it is raising funds. The new round of financing aims to raise approximately $2 billion by selling company equity to repay over $10 billion in subordinated debt and to provide funding for the company Musk acquired in 2022 (then known as Twitter).

In 2022, Musk purchased Twitter for $44 billion.

After acquiring the company, Musk relaxed the platform’s censorship policies, leading to the departure of many advertising clients. According to data disclosed at the end of September last year, the company’s valuation was less than $10 billion.

The change in X’s valuation now may be due to several factors. First, the company’s advertising revenue may have recovered to levels before the acquisition. Its recently announced profit for 2024 (adjusted for interest, taxes, depreciation, and amortization) is approximately $1.2 billion, roughly in line with levels before Musk took over, with indications that X’s cost-cutting plans are proving effective.

Furthermore, in the weeks following Trump’s victory last year, Musk’s relationship with the new government has become increasingly close, with him eventually being appointed as the head of the Department of Government Efficiency (DOGE) in the Trump administration, playing a significant role. Investor interest in X has surged, with large conglomerates like Amazon recently increasing their marketing spending on X.

CEO Linda Yaccarino announced in January that X will launch the digital wallet “X Money” for peer-to-peer payment services later this year and plans to utilize AI technology to promote advertisements and products on X.