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HomeNewsBeyond the Hype: Tesla and SpaceX's $373M Bitcoin Holdings Not Linked to...

Beyond the Hype: Tesla and SpaceX’s $373M Bitcoin Holdings Not Linked to Recent Crash

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  • SpaceX marked down Bitcoin by $373 million across 2021 and 2022.
  • Uncertainty surrounds whether the full $373 million Bitcoin stack was liquidated.

SpaceX’s Cryptocurrency Move

SpaceX, the renowned aerospace technology conglomerate, took a significant step by adjusting the value of its Bitcoin holdings downwards by $373 million in the last two years. There’s current speculation that the company may have disposed of its entire cryptocurrency portfolio.

Reports emerging from The Wall Street Journal on August 17 suggest that SpaceX listed Bitcoin assets valued at $373 million on its financial statements in the years 2021 and 2022. There’s an ongoing debate on whether the aerospace titan sold off its entire Bitcoin cache, but what is clear is the decision to devalue its cryptocurrency assets.

The insight into SpaceX’s fiscal operations unveiled that the company had financial outflows of approximately $5.2 billion in 2022. A deeper dive shows that over the span of 2021 and 2022, the firm allocated $5.4 billion towards acquiring tangible assets, research, and innovation initiatives.

It’s essential to reflect on a notable declaration made by SpaceX’s visionary CEO, Elon Musk, back in 2021. Musk publicized SpaceX’s foray into the world of Bitcoin. This proclamation came on the heels of an official document filed with the U.S. Securities and Exchange Commission (SEC) by Tesla – another brainchild of Musk. The documentation detailed Tesla’s intention to onboard Bitcoin assets valued at a staggering $1.5 billion. Musk’s disclosure arguably served as a catalyst, propelling Bitcoin to reach a zenith of over $43,000 – a record at the time.

As of Tesla’s Q2 2023 financial disclosures, the electric car magnate indicated that it had divested a significant portion of its Bitcoin holdings. The report revealed a liquidation of over 30,000 BTC in 2022’s second quarter, accumulating $936 million. This represented a sale of approximately 75% of its primary Bitcoin stash worth $1.5 billion, leaving them with Bitcoin assets valued at a mere $184 million.

The globally acknowledged billionaire, Musk, frequently offers his insights on cryptocurrencies, encompassing both Bitcoin and Dogecoin, via various social media platforms. Notably, after acquiring Twitter (subsequently rebranded as X) in October 2022 for $44 billion, Musk dropped hints about the platform venturing into a comprehensive financial ecosystem, potentially encompassing banking and payment modules.

While the exact timing of SpaceX’s speculated Bitcoin divestment remains ambiguous, 2022 was marked by significant upheavals in the cryptocurrency arena, accompanied by the implosion of industry giants like Terraform Labs. Nevertheless, a multitude of tech enterprises and financial entities persist in their allegiance to Bitcoin and its cryptocurrency counterparts.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628
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