The aerospace technology corporation SpaceX is alleged to have sold all of its cryptocurrency holdings after marking down its Bitcoin assets by a total of $373 million over the last two years.
According to a recent story from The Wall Street Journal on August 17, SpaceX noted a $373 million fall in the value of Bitcoin on its financial records for the years 2021 and 2022, suggesting that these assets may be sold. The $373 million Bitcoin cache’s full sale is still pending confirmation, though.
After carefully examining the company’s financial records, The Journal identified around $5.2 billion in total expenditures for 2022 and an estimated $5.4 billion in expenditures for property acquisition, equipment, research, and development in 2021 and 2022 taken together.
Elon Musk, the CEO of SpaceX, had publicly announced the company’s purchase of Bitcoin back in 2021. Following an official filing with the U.S. Securities and Exchange Commission, another Musk-led company, Tesla, disclosed its plan to acquire Bitcoin assets worth $1.5 billion. This announcement may have contributed to Bitcoin’s price increase, which at the time exceeded $43,000, setting a record high.
Tesla said in its Q2 2023 earnings that it had cashed out over 30,000 BTC in Q2 2022 for a total of $936 million, leaving it with only $184 million in remaining Bitcoin assets. This selling equals almost 75% of their $1.5 billion initial Bitcoin investment.
While the precise chronology of SpaceX’s Bitcoin transactions is unclear, 2022 saw a significant decline in the cryptocurrency market, which was in part caused by the failure of industry titans like Terraform Labs. Nevertheless, many banks and IT companies continue to hold positions in Bitcoin and other cryptocurrencies.