SpaceX's Bitcoin Moves: Valuation Shifts and Sales

Martin Walker
Aug 19, 2023 at 03:53 pm

SpaceX, the prominent aerospace technology company, apparently devalued its Bitcoin holdings by a substantial $373 million during the previous two years, and it is rumored to have potentially divested itself of the entire Bitcoin stash.

As per a report from The Wall Street Journal on August 17th, SpaceX documented a depreciation of its Bitcoin (BTC) holdings by $373 million in the years 2021 and 2022, subsequently offloading the cryptocurrency.

It has yet to be verified if the complete reserve of $373 million was indeed liquidated.

The WSJ communicated, "In 2021 and 2022, SpaceX markedly adjusted its Bitcoin valuation, decreasing it by a total of $373 million, and then proceeded to enact a sale of the digital asset."

Allegedly, the news source obtained access to the organization's financial records, which indicated a combined expenditure of approximately $5.2 billion for the year 2022. The expenses were attributed to the acquisition of assets, equipment, as well as research and developmental costs. The figures for 2021 and 2022 remained consistent at $5.4 billion.

In 2021, Elon Musk, the CEO of SpaceX, made a public declaration of the firm's Bitcoin possession. This declaration followed an official submission to the U.S. Securities and Exchange Commission, revealing Tesla's intent—another venture co-established by Musk—to secure $1.5 billion worth of the aforementioned digital asset. Evidently, this pronouncement significantly contributed to BTC's reaching an unprecedented pinnacle of over $43,000.

Tesla's financial report for the second quarter of 2023 disclosed that, apart from $184 million worth of Bitcoin, all other holdings had been divested. During the second quarter of 2022, Tesla purportedly sold more than 30,000 BTC, garnering $936 million—equivalent to approximately 75% of the original BTC holding valued at $1.5 billion.

Furthermore, Elon Musk, a prominent figure among the world's wealthiest individuals, has frequently employed social media as a platform to share his insights concerning various cryptocurrencies, encompassing Bitcoin and Dogecoin. He even momentarily modified Twitter's iconic blue bird emblem to feature the likeness of the DOGE Shiba Inu. Since his substantial acquisition of Twitter (later rebranded as X) for $44 billion in October 2022, Musk has hinted at the potential for the platform to encompass a "complete financial realm," potentially encompassing financial services like banking and payments.

The exact timeline of SpaceX's alleged Bitcoin divestiture remains obscure, though the cryptocurrency market encountered significant turbulence in 2022, partially attributed to the downfall of prominent entities, including Terraform Labs. Despite this, numerous technology enterprises and financial establishments have persisted in retaining their Bitcoin and alternative cryptocurrency holdings.

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