SpaceX, the renowned aerospace technology firm co-founded by Elon Musk, has made significant headlines with its Bitcoin dealings. According to reports from The Wall Street Journal on August 17th, the company recorded a total write-down of $373 million in Bitcoin holdings for the years 2021 and 2022. The write-down is part of a financial shift that may have led to the selling of all the company’s cryptocurrency assets.
SpaceX’s balance sheet reveals that the company marked down its Bitcoin holdings by $26,049, impacting the firm’s financial health. However, it remains unclear whether the entire $373 million stash of Bitcoin was indeed sold. The documents that were viewed by the news outlet showcased a total of $5.2 billion in expenses for 2022, along with $5.4 billion for 2021 and 2022 in various categories such as property acquisition, equipment, research, and development.
This move by SpaceX follows Musk’s announcement back in 2021 that the company had acquired a certain amount of Bitcoin. The action was possibly spurred on by a U.S. Securities and Exchange Commission filing by Tesla — another Musk-founded company — that highlighted plans to purchase $1.5 billion in the crypto asset.
Tesla’s Liquidation of Bitcoin and Musk’s Influence on the Market
Tesla’s involvement with Bitcoin didn’t end with their purchase; their interactions continued to stir the crypto world. According to the company’s second-quarter earnings report in 2023, Tesla had sold all but $184 million of its Bitcoin holdings, liquidating over 30,000 BTC for $936 million. This sale amounted to roughly 75% of its original $1.5 billion Bitcoin holdings.
Musk’s public relationship with cryptocurrencies like Bitcoin and Dogecoin has often been discussed. The tech mogul has been known to use social media platforms, like Twitter, to comment on and influence the value of these digital currencies. Musk’s $44 billion purchase of Twitter (now rebranded as X) in October 2022 further stirred the pot, with suggestions that the platform could potentially offer banking and payment services.
The timing of SpaceX’s reported Bitcoin sale remains unclear. It happened during a tumultuous period for the crypto market, characterized by significant crashes in 2022, including the collapse of notable firms such as Terraform Labs and FTX.
The actions by Tesla and SpaceX signify a shifting perspective on Bitcoin and other cryptocurrencies within the tech industry. With many firms and financial institutions still holding onto cryptocurrencies, the decisions by two of Musk’s companies add a new layer to the ongoing conversation about the place of cryptocurrencies in modern business.