As far as I can see, Bitcoin is not destroyed. It is still thriving, although the exchange rates have dipped below $50K. Elon should worry about his crappy Tesla EVs. From what I heard, a number of major automobile manufacturers are going to enter the EV sector in a big way. There will be more competition, and there is a chance that the overpriced Tesla cars will be destroyed soon by other manufacturers such as Toyota and Volkswagen.
He might just diverting and trying to collect more cheap coins if that competition is on it's way Musk are preparing for much
wider participations might be bringing something big to this industry.
We can't conclude what inside is mind for now we are seeing impacts from whatever move he's doing along the way, but sooner
or later it will reveal what his real position.