SpaceX, the aerospace technology company, has reportedly marked down the value of its bitcoin holdings by a combined $373 million in the past two years, suggesting it might have also sold off its entire bitcoin stash, as per recent reports.
The company accounted for the cryptocurrency on its balance sheet for the years 2021 and 2022, with indications pointing to its possible liquidation. It's still uncertain whether the entire bitcoin holdings, valued at $373 million, have been completely sold .
The Wall Street Journal revealed that "SpaceX wrote down a total of $373 million in the value of its bitcoin holdings and sold the cryptocurrency" over 2021 and 2022. Financial documents reviewed by the news outlet also indicated SpaceX's total spending of approximately $5.2 billion in 2022 and $5.4 billion in 2021 and 2022 on property and equipment acquisitions, excluding research and development costs.
Elon Musk, CEO of SpaceX, had publicly disclosed in 2021 that the company had obtained a certain amount of bitcoin. Tesla, another company co-founded by Musk, also declared its intention to purchase $1.5 billion worth of cryptocurrency in a document submit ted to the US Securities and Exchange Commission. The news could potentially impact bitcoin prices, possibly leading to new all-time highs above $43,000.
As for Tesla, the company's Q2 2023 earnings report indicated that it had sold $184 million worth of the bitcoin it had held, retaining $184 million worth. In the second quarter of 2022, Tesla reported liquidating over 30,000 bitcoins valued at $936 million, constituting around 75% of its original bitcoin holdings worth $1.5 billion. Elon Musk, one of the world's wealthiest individuals, frequently comments on various cryptocurrencies, including Bitcoin and Dogecoin, on social media platforms. He even briefly altered Twitter's iconic bluebird logo to feature the DOGE Shiba Inu.
The timing of SpaceX's reported bitcoin sale remains unclear. It's worth noting that the cryptocurrency market experienced a significant crash in 2022 due to the downfall of major companies like Terraform Labs. Despite this volatility, many tech companies and financial institutions continue to retain bitcoin and others cryptocurrencies in their portfolios.
