Aerospace technology company SpaceX has written down its Bitcoin holdings by a total of $373 million, potentially affecting its entire cryptocurrency portfolio.
In 2021, Elon Musk revealed that SpaceX owns Bitcoin, with Tesla’s SEC filing revealing plans to invest $1.5 billion in the digital currency.
As per Wall Street Journal report on August 17, SpaceX initially listed $373 million in value on its balance sheet in 2021 and 2022. However, its valuation has since been marked down and cryptocurrency assets have since been sold.
The exact extent of the sold holdings totaling $373 million is uncertain. “SpaceX has undervalued its bitcoin holdings by $373 million in the past year and in 2021 and has sold the cryptocurrency,” the WSJ said.
Documents reviewed by the news outlet detail the company’s finances, showing total spending of about $5.2 billion in 2022 and $5.4 billion in 2021 and 2022. These costs include acquisition of property and equipment as well as research and development costs.
SpaceX CEO Elon Musk publicly announced the company’s Bitcoin acquisition in 2021. The announcement was followed by a similar move by Tesla, a company co-founded by Kasturi, which revealed its intention to buy $1.5 billion worth of cryptocurrency. Subsequently, Bitcoin entered a high above $43,000.
Tesla’s Q2 2023 earnings report confirmed that the company has only $184 million of its original Bitcoin holdings in reserve. During Q2 2022, Tesla sold over 30,000 BTC for $666 million, roughly 75% of its initial $1.5 billion investment.
The timing of SpaceX’s reported bitcoin sale remains uncertain, but it coincided with a substantial cryptocurrency market decline in 2022, due to the collapse of major entities such as Terraform Labs. Despite such challenges, numerous technology companies and financial institutions continue to maintain Bitcoin and other cryptocurrencies in their portfolios.
Tesla CEO and X owner Elon Musk made an odd mention of Ethereum co-founder Vitalik Buterin in a recent tweet. Responding to Vitalik Butrin’s recent commentary on Community Notes, Kasturi praised Butrin’s insightful analysis of the topic.
Vitalik Buterin supported X’s “community notes” feature in an extensive blog post published today, highlighting its importance and connection to “crypto values”.
Described as a fact-checking tool that occasionally adds contextual notes, Community Notes can potentially be seen as the closest realization of “crypto values” in the mainstream world, as EthCreator notes.
This caught the attention of Elon Musk, who, in his usual fashion, received a response from the crypto community, with tags to the eth creator. One Twitter user interpreted this interaction as a sign of Musk’s optimism towards ETH.
In an unexpected turn of events, Elon Musk started following Vitalik Buterin on Twitter in June. Despite recent turbulent events on Twitter, community notes have emerged as a highly accepted tool aimed at countering misinformation by providing contextual information and factual details in messages.
Elon Musk has shown a distinct interest in this Twitter feature. The report indicated that Kasturi expressed gratitude to the Japanese contributors for their efforts to provide Japanese commentary in Japanese. The gesture prompted a response from Shiba Inu breed leader Shitoshi Kusama.
In July, Twitter rebranded as X and began trying to transform into Elon Musk’s “everything app.” Long before Twitter’s $44 billion acquisition last year, they discussed the concept of an all-inclusive service called “X.” The concept was broad and adaptable, as was the style of Musk.
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