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Spacex Decreases Bitcoin Value by $373 Million

Over the past two years, Spacex has marked down its bitcoin investments by $373 million and also sold an unspecified portion of the digital currency. This move mirrors that of Tesla, another enterprise under the leadership of billionaire Elon Musk, in its approach to bitcoin assets.

$373M Bitcoin Value Reduction by Spacex

Last Thursday, information obtained by the Wall Street Journal revealed that Spacex has made adjustments to the value of its bitcoin holdings, bringing them down by $373 million in the last year and in 2021, along with selling some. This mirrors Tesla’s management of its bitcoin investments, a subject Elon Musk has often shared thoughts on online.

The announcement prompted various media outlets to mistakenly claim that Spacex had offloaded all its bitcoin holdings, causing the cryptocurrency’s price to fall.

Many online users, however, were quick to point out that marking down investments is a regular part of accounting for businesses, and it doesn’t mean the assets have been liquidated or sold. This could happen when a company reduces the value of its stock due to a decrease in market price but continues to hold onto it.

Similar Bitcoin Strategies by Tesla and Spacex

Though Elon Musk confirmed in July 2021 that Spacex owns bitcoin, the specifics regarding their BTC holdings are still largely confidential. Tesla’s bitcoin situation, on the other hand, is more transparent. Both companies, according to the Wall Street Journal, have aligned strategies with their bitcoin holdings.

Tesla made a $1.5 billion bitcoin purchase during Q1 2021. It then lessened its bitcoin collection on two occasions: in Q1 2021 and in July of the same year, coinciding with Spacex’s markdown of its bitcoin assets.

Tesla sold $272 million in BTC in Q1 2021. Musk justified this action as a demonstration of bitcoin’s liquidity as an alternative to cash reserves. In July, the company sold about 75% of its bitcoin, adding $936 million in cash to its books. Musk cited the need to strengthen its cash position due to the unpredictability of the Covid lockdowns in China. However, Musk emphasized:

Bitcoin’s future in our portfolio is still open, and this should not be seen as a judgment against the cryptocurrency.

Even after these sales, Tesla’s Q2 financials disclose that the company still possesses bitcoin worth $184 million.

Share your thoughts on Spacex’s decision to mark down its bitcoin investments in the comments section below.

Frequently Asked Questions (FAQs) about fokus keyword: Spacex

What did Spacex do with its Bitcoin holdings?

Spacex reduced the value of its Bitcoin holdings by $373 million over the past two years and also sold an unspecified amount. This action was taken in alignment with Tesla, another company under Elon Musk’s leadership.

How much Bitcoin did Tesla purchase and sell in Q1 2021?

In Q1 2021, Tesla bought Bitcoin valued at $1.5 billion and sold $272 million of it. The sale was justified by Musk as a way to prove Bitcoin’s liquidity as an alternative to holding cash on the balance sheet.

Why did Tesla sell approximately 75% of its Bitcoin in July?

Tesla sold around 75% of its Bitcoin in July to add $936 million in cash to its balance sheet. Musk explained that the company needed to “maximize” its cash position due to the uncertainty of the Covid lockdowns in China.

Do Tesla and Spacex still hold Bitcoin?

Yes, both Tesla and Spacex continue to hold Bitcoin. Tesla’s Q2 financials reveal ownership of Bitcoin valued at $184 million, while the specifics of Spacex’s holdings remain undisclosed. Elon Musk has expressed that they are open to increasing Bitcoin holdings in the future.

Did Spacex liquidate all its Bitcoin holdings?

No, Spacex did not liquidate all its Bitcoin holdings. While it marked down the value by $373 million and sold some, many have pointed out that writing down investments is a standard accounting practice and does not imply full liquidation.

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5 comments

JohnSmith123 August 19, 2023 - 7:42 pm

I can’t belive Spacex and Tesla are doing this with Bitcoin. Seems like they know something we dont. Musk’s a genius or a madman!

Reply
CryptoFan88 August 20, 2023 - 3:36 am

so they sold some BTC and kept some, whats the big deal? its business as usual and musks always been a wildcard in crypto. no surprise here

Reply
GreenEnergyFan August 20, 2023 - 5:54 am

musk and his companies always in the news, whether its about electric cars or cryptos, they always grab headlines! i just hope they are making the right moves for the future.

Reply
TechGuru77 August 20, 2023 - 8:44 am

Teslas sales make sense considering the situation in China. spacex on the other hand, is a bit of a mystery here. Wonder what their actual strategy is?

Reply
SallyInvests August 20, 2023 - 9:50 am

Does anyone think that this might impact other companys’ decisions with Bitcoin? I’m kinda new to all this so I’m tryng to learn.

Reply

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