SpaceX Suffers $373 Million Bitcoin Write-Down Amid Market Crash
SpaceX, led by billionaire Elon Musk, has been implicated as one of the driving forces behind a significant cryptocurrency market dip, with Bitcoin (BTC) falling sharply to approximately $25,300. This sharp decline came on the heels of a Wall Street Journal (WSJ) report that disclosed previously unrevealed financial details about SpaceX.
According to the WSJ, SpaceX took a significant hit, writing down its Bitcoin holdings by $373 million across 2020 and 2021. It is unclear from the report whether this “write-down” came as a result of SpaceX actively selling its Bitcoin or simply a decline in the digital asset’s value compared to its purchase price. The specifics surrounding the volume of Bitcoin that SpaceX bought or sold during this period remain undisclosed.
Musk, who is known for his influence in the crypto world, has previously acknowledged owning Bitcoin personally, as does his aerospace firm, SpaceX. However, the exact amount has never been divulged to the public.
In contrast, Musk’s electric vehicle company, Tesla, has been more open about its cryptocurrency dealings. In February 2021, Tesla reported a $1.5 billion investment in Bitcoin. Although this investment saw a peak value of $2 billion, Tesla has since offloaded a substantial portion of its Bitcoin holdings, with the most recent value estimated at $184 million.
Interestingly, the Bitcoin market seemed relatively unresponsive to this recent revelation about SpaceX. At the time the news broke, Bitcoin’s value was hovering around $20,000, not far from its annual low.
Musk’s interactions with the cryptocurrency sphere have historically been notable. For instance, Bitcoin’s value plummeted by half in May 2021 after Musk announced that Tesla would no longer accept it as a payment option for its vehicles. Additionally, Musk’s social media activity, particularly on Twitter, has significantly swayed the value of other digital assets. Notably, Dogecoin (DOGE) saw a 25% surge in value after Musk modified his Twitter profile picture to feature a Shiba Inu, symbolizing the meme-inspired cryptocurrency.
