The valuation of Elon Musk's social media platform, X, has reportedly returned to the $44 billion he originally paid for it.

Investors assessed the platform at $44 billion in a secondary transaction earlier this month, involving the exchange of existing shares in the company.

This valuation marks a considerable rise from the $10 billion valuation given by Fidelity Investments just last September.

X is also in the process of securing $2 billion in new capital to settle over $1 billion in junior debt.

Since Musk took control of the platform in October 2022, he has relaxed moderation policies, which has led many advertisers to either pause their campaigns or withdraw altogether.

The company subsequently filed a lawsuit against a global advertising alliance and several major firms, alleging they unlawfully colluded to boycott the social network.

Although revenues at X have decreased since Musk's takeover, the company reported adjusted earnings of $1.2 billion last year.

The latest valuation offers a positive outlook for investors, such as Andreessen Horowitz, Sequoia Capital, and Fidelity Investments.

Moreover, institutions that funded loans for Musk's acquisition of X gained an advantage after he allocated a 25% stake in his artificial intelligence startup, xAI, to them.

xAI has since achieved a valuation of $45 billion, providing new reassurance to lenders and contributing to X's updated valuation. Meanwhile, Musk's substantial stake in Tesla is no longer his most valuable asset, as SpaceX has become his largest asset for the first time in five years, estimated to be worth $147 billion.