SpaceX’s Major Bitcoin Write-Down: Full Liquidation?
SpaceX, the aerospace technology company, has reportedly devalued its Bitcoin holdings by $373 million, potentially liquidating its entire portfolio.
In 2021, Elon Musk, the CEO, disclosed SpaceX’s Bitcoin ownership after an official filing with the U.S. Securities and Exchange Commission, which revealed Tesla’s plan to acquire $1.5 billion worth of the cryptocurrency.
According to an August 17th report by The Wall Street Journal, SpaceX initially documented $373 million in Bitcoin assets on its financial statement for 2021 and 2022. However, the company has since adjusted the valuation downward and reportedly sold its Bitcoin assets.
The complete divestiture of the $373 million Bitcoin reserve has yet to be confirmed.
The WSJ stated, “SpaceX wrote down the value of bitcoin it owns by a total of $373 million last year and in 2021 and has sold the cryptocurrency”.
The news outlet reportedly gained access to financial documents showing approximately $5.2 billion in total expenditures for 2022, as well as $5.4 billion during 2021 and 2022 for property and equipment acquisition, along with research and development expenses.
Elon Musk, the CEO of SpaceX, publicly declared in 2021 that the company had procured a specific quantity of Bitcoin. This disclosure followed Tesla’s filing with the SEC, which unveiled the intention to purchase $1.5 billion worth of the crypto asset. This announcement potentially played a role in propelling BTC to a then-record high of over $43,000.
According to Tesla’s Q2 2023 financial report, the company had divested all but $184 million of its Bitcoin assets. During the second quarter of 2022, Tesla reportedly sold over 30,000 BTC for $936 million, constituting roughly 75% of its original $1.5 billion Bitcoin holdings.
Elon Musk, among the wealthiest individuals globally, has frequently used social media to comment on specific cryptocurrencies such as Bitcoin and Dogecoin. He even temporarily altered Twitter’s iconic blue bird logo to the likeness of the DOGE Shiba Inu.
After his $44 billion acquisition of Twitter (later rebranded as X) in October 2022, he hinted that the platform might encompass an “entire financial world,” including banking and payment services.
The timing of SpaceX’s alleged Bitcoin liquidation remains uncertain, but the cryptocurrency market underwent a substantial downturn in 2022, coinciding with the downfall of prominent enterprises, including Terraform Labs.
Additionally, this news was misreported initially, with some reports suggesting SpaceX had begun selling or had recently sold, possibly causing a -12% market crash in a matter of hours overnight.
Despite this, numerous technology companies and financial institutions continue to retain Bitcoin and other digital assets.
