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SpaceX, the aerospace manufacturer founded by Elon Musk, has reportedly sold its entire Bitcoin holdings. According to a report by the Wall Street Journal, the company had roughly $373 million worth of BTC on its balance sheet in 2021 and 2022.
The report did not specify when SpaceX sold its Bitcoin holdings, but the company likely offloaded them in recent months, coinciding with the pronounced decline in Bitcoin’s value. The cryptocurrency has endured a significant drop, losing over 50% of its peak value of $68,789, recorded in November 2021.
This development sheds light on the company’s investment strategy and its role within the evolving landscape of cryptocurrencies. Additional documentation revealed that SpaceX liquidated its Bitcoin holdings and undertook a write-down of the cryptocurrency’s value by $373 million throughout 2021 and 2022.
This financial move echoes a similar strategy implemented by Tesla, another of Musk’s ventures, which adjusted its Bitcoin holdings in response to market fluctuations.
Furthermore, a glimpse into SpaceX’s financial reports indicates substantial expenditures. Approximately $5.2 billion in expenses were incurred during 2022, with a comparable $5.4 billion during 2021 and 2022. These expenditures encompassed property and equipment acquisitions and research and development costs.
Tesla’s Involvement and Strategic Moves
Elon Musk’s influence extends beyond SpaceX, as he is also at the helm of Tesla. In 2022, Tesla made headlines by selling approximately 75% of its initial $1.5 billion Bitcoin investment. In its second-quarter earnings statement, the company said:
As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency.
The company mentioned that the resulting cash infusion amounted to $936 million. While SpaceX remains silent on the reason behind selling its bitcoins, Musk explained that Tesla had sold Bitcoin to cover production expenses in China, which were impacted by the COVID-19 pandemic.
Elon Musk: A Crypto Enthusiast
Elon Musk’s keen interest in cryptocurrencies has been evident for a long time. He publicly acknowledged SpaceX’s involvement with cryptocurrencies, especially Bitcoin, in 2021. This disclosure came after Tesla declared its plan to invest $1.5 billion in Bitcoin, which significantly boosted Bitcoin’s value, pushing it to a record high of $43,000.
While Musk has shown interest in various cryptocurrencies, The tech icon playfully interacted with the Dogecoin community, and he even changed Twitter’s logo to showcase the Shiba Inu connected with Dogecoin.
The precise impact of SpaceX’s sale of Bitcoin on the cryptocurrency market is still uncertain and is being discussed. Nevertheless, a noticeable reaction occurred in the market after the news broke. Bitcoin experienced a sudden decrease of around 8% in just 10 minutes on August 17.
According to Coinmarketcap, this rapid decline caused Bitcoin’s value to fall below the $26,000 mark before it partially recovered.
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