- SpaceX’s financial reports reveal the company has sold its BTC holdings.
- The company sold nearly $373 million worth of Bitcoin, while Tesla sold $936 million.
- Bitcoin has dipped to $26,000, falling 9% in value since the end of March.
Elon Musk’s SpaceX recently released financial reports have shaken the Bitcoin market. Published in Wall Street Journal (WSJ), SpaceX’s private quarterly and annual results reveal that the company made $55 million in profit from a $1.5 billion revenue.
This was the first recorded profit for the company after $559 million were lost in 2022 on a $4.6 billion revenue. Meanwhile, it is investing heavily in new projects, recording $3.3 billion in expenses in 2021, followed by $5.2 billion worth of expenses in 2022.
A fresh injection of FUD hit the Bitcoin market when a section of SpaceX’s financial report was misreported in a tweet by Bitcoin Magazine. As reported by the WSJ,
SpaceX wrote down the value of bitcoin it owns by a total of $373 million last year.
In other words, SpaceX adjusted the recorded value of its BTC holding as per. This is a routine accounting practice where an asset’s value is lowered if the market value falls behind the recorded value.
However, the WSJ story was creatively interpreted by Bitcoin Magazine as SpaceX having “sold all its $373 million bitcoin”.
Followers were quick to add a Community Notes to the tweet, pointing out the false information, but not soon enough to prevent a bloodbath in the BTC market. According to CoinMarketCap the leading cryptocurrency fell by 9% in under 10 minutes, touching $25,314, the lowest price recorded since June 16.
Back in 2021, CEO Musk shared at a conference that SpaceX owns Bitcoin. Also in 2021, Tesla reported having purchased $1.5bn of BTC.
Tesla’s second-quarter 2023 earnings report indicated that it liquidated over 30,000 BTC in Q2 of 2022 for $936 million, amounting to 75% of its $1.5 billion Bitcoin holdings. The company appears to be HODLing its remaining $184 million BTC for the time being.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
