SpaceX Records a $373 Million Write-Down on Bitcoin Holdings, Courtesy of Elon Musk
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It has been reported that SpaceX reduced the worth of its Bitcoin investments by $373 million over the course of the last two years, and also made sales of an unspecified amount of the cryptocurrency. Tesla, which is also owned by the billionaire Elon Musk, is said to have employed a comparable approach with its own Bitcoin assets.
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The #Libya Update pic.twitter.com/3GpsKuUHot
— The Libya Update (@TheLibyaUpdate) January 4, 2023
Over the course of the last two years, SpaceX has reportedly sold an undisclosed amount of Bitcoin and reduced the value of its Bitcoin assets by $373 million.
Tesla, which is also owned by Elon Musk, allegedly followed a similar approach with its Bitcoin holdings. The Wall Street Journal revealed that it had reviewed documents that showed SpaceX had diminished its Bitcoin investments.
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Last year and in 2021, SpaceX sold its cryptocurrency and recorded a decrease in the value of its bitcoin holdings totaling $373 million. Tesla also took similar actions with its bitcoin holdings. Cryptocurrency has been a frequent topic of discussion for Musk, who has posted about it extensively over the years.
Tesla and SpaceX Adopt Similar Bitcoin Approaches
Details regarding SpaceX’s bitcoin holdings are not widely known, despite Elon Musk acknowledging their possession of the cryptocurrency in July 2021. Conversely, Tesla has been more transparent about their own Bitcoin investments.
According to The Wall Street Journal, both companies have adopted similar approaches to managing their Bitcoin holdings.
SpaceX and Tesla are doing well. They started small, churning staff as they generated the culture/processes they have today. He seems to think he can just airdrop that culture and get a similar result. Even if the Twits left wanted to adopt it, they probably wouldn't know how.
— Ethan Owens (@Twixted1) November 18, 2022
In the first quarter of 2021, Tesla invested $1.5 billion in bitcoin. Afterwards, the company sold off some of their BTC holdings twice, once in Q1 2021 and again in July of the previous year. During these same two years, SpaceX reportedly lowered their bitcoin holdings.
In the first quarter of 2021, Tesla made $272 million from selling Bitcoin. According to Musk, the sale was done to demonstrate the liquidity of Bitcoin as an alternative to keeping cash on the balance sheet. In July of last year, the company sold almost 75% of its Bitcoin, which brought in $936 million in cash to the balance sheet.
Tesla Sold $272 Million Worth Of Bitcoin In The First 3 Months Of 2021 Making $101 Million In Profits pic.twitter.com/a6S14Zhvjt
— Marketing Maverick (@MarketingMvrick) April 27, 2021
The reason for this move, as emphasized by the billionaire, was to “maximize” the cash position of the company due to the uncertainty of COVID lockdowns in China. We want to clarify that we are not making any negative comments about bitcoin, as we remain open to the possibility of increasing our investments in it at a later time.
