SpaceX, the pioneering aerospace technology firm, has marked down the value of its Bitcoin holdings by $373 million over the past two years and is believed to have potentially liquidated its entire cryptocurrency portfolio.
A report published on August 17 by The Wall Street Journal revealed that SpaceX had entered $373 million worth of Bitcoin holdings on its financial records for 2021 and 2022, and the company has indeed divested from its cryptocurrency assets.
While the complete disposal of the $373 million Bitcoin stash remains unconfirmed, the WSJ reported, “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.”
Examination of financial documents from the aerospace firm exposed an expenditure of roughly $5.2 billion in 2022 and $5.4 billion in 2021 and 2022 combined. These funds were allocated towards property acquisition, equipment procurement, and research and development ventures.
SpaceX’s CEO, the prominent Elon Musk, publicly announced in 2021 about acquiring a certain quantity of Bitcoin. This proclamation followed a filing with the U.S. Securities and Exchange Commission which disclosed Tesla’s, another company co-founded by Musk, intention to invest $1.5 billion in the cryptocurrency. The disclosure notably contributed to Bitcoin reaching an unprecedented value of over $43,000.
According to Tesla’s Q2 2023 earnings report, the electric vehicle manufacturer had liquidated all but $184 million of its initial Bitcoin holdings. Tesla sold more than 30,000 BTC during Q2 2022 for $936 million, representing around 75% of its original $1.5 billion Bitcoin investment.
Doges ftw pic.twitter.com/bl0trQ7BdU
— Elon Musk (@elonmusk) July 19, 2023
Elon Musk, one of the wealthiest individuals globally, has frequently employed social media to share thoughts on cryptocurrencies, such as Dogecoin and Bitcoin. He even momentarily altered Twitter’s iconic blue bird logo to depict the DOGE Shiba Inu. Since he acquired Twitter for $44 billion and later rebranded as X in October 2022, Musk hinted at the platform’s potential to encompass an entire banking and payment services ecosystem.
Although the exact timing of SpaceX’s purported Bitcoin divestment remains uncertain, the broader cryptocurrency market encountered substantial turbulence in 2022 amid the collapses of prominent firms, including Terraform Labs. Despite this volatility, numerous technology enterprises and financial institutions continue to retain their investments in Bitcoin and other digital assets.