Bitcoin (BTC) experienced a sudden flash crash, plummeting to around $25.3k and causing significant liquidations for traders. This unexpected downturn comes in the wake of Evergrande’s bankruptcy, but it is the SpaceX write-down that has captured the attention of the market.
Recently, certain documents have emerged, providing rare insights into the financials of Elon Musk’s SpaceX. These documents reveal that the space company has written down the value of its Bitcoin holdings by a total of $373 million in 2021 and 2022. The Wall Street Journal reported on this development, attributing it to the sudden sell-off in the crypto market after a prolonged period of low volatility.
According to the documents obtained by WSJ, SpaceX’s financials show approximately $5.2 billion in overall expenditures for 2022. The documents also indicate expenditures of $5.4 billion in both 2021 and 2022, primarily related to asset acquisition, equipment, and research and development expenses.
It is important to note that the report does not confirm whether SpaceX has actually sold its Bitcoin stash, as the company is privately held. While Elon Musk previously acknowledged that the spacecraft manufacturer owned Bitcoin in 2021, he has not provided much information on the matter.
A write-down refers to the reduction in the book value of an asset when its fair market value (FMV) falls below the carrying book value. Neither SpaceX nor Musk have commented on the report at this time, and the exact timing of the alleged Bitcoin sale remains unclear.
In a related development, Tesla, another company associated with Elon Musk, sold over 30,000 BTC during the second quarter of 2022, generating $936 million. This accounted for approximately 75% of the company’s initial BTC holdings, which were valued at $1.5 billion. Tesla’s second-quarter 2023 earnings report revealed that the automotive giant had liquidated all of its Bitcoin holdings, except for those valued at around $184 million.
The flash crash in Bitcoin’s price and the SpaceX write-down have sparked speculation and discussions within the crypto community. Traders and investors are closely monitoring the situation and assessing the potential impact on the overall market.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. The cryptocurrency market is highly volatile and unpredictable. Readers should do their own research and consult with a professional advisor before making any investment decisions.
Note: This article was written based on available information and does not reflect any official statements or confirmations from SpaceX, Elon Musk, or Tesla.
