SpaceX Write Down its BTC Holding by $373M

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Elon Musk-owned aerospace technology firm SpaceX allegedly wrote down the value of its Bitcoin (BTC) holding by about $373 million last year as well as the year before. There is also speculation that the firm may have sold all of its holdings, based on a Wall Street Journal report which provided insights into the company’s financial history. 

SpaceX Incurred Huge Expenses Amidst Crypto Industry Crash

Markedly, the amount of Bitcoin sold or the specific date when they were sold was not mentioned but it was worth noting that the broad crypto industry had a tumultuous time in 2022. Following the crash of Terraform Labs in May, several top major firms suffered insolvencies and ended up filing for bankruptcy protection from investors.

The documents showed that SpaceX incurred around $5.2 billion in total expenses in 2022. Within 2021 and 2022, the firm spent $5.4 billion on research and development costs and for acquiring property and equipment. 

SpaceX Owns Bitcoin, Says Musk

It is worth noting that way back in 2021, SpaceX founder Elon Musk made a public announcement about a BTC acquisition made at the time. 

He made this declaration while having a discussion with Ark Invest Chief Executive Officer (CEO) Cathie Wood and Jack Dorsey who was the CEO of Twitter (now X) at the time. Musk stated that he owned Bitcoin, Ethereum (ETH), and Dogecoin (DOGE) but confirmed SpaceX also owns BTC.

The revelation came as a surprise because SpaceX is private. Therefore, it was unknown that the space tech firm had a portion of its holdings in cryptocurrencies. During his talk, he claimed that SpaceX is playing a role in achieving the vision of BTC, which he says is to be “the monetary system of the world”.

Tesla Accepts BTC as a Payment Option

His other company Tesla was totally pro-BTC as it had gone as far as accepting Bitcoin as an alternative payment option. 

The electric automobile manufacturer later had to suspend the move and sell off as much as 75% of its total BTC holding when concerns were raised about the environmental effect and the energy utilization of the digital currency. 

Additionally, many Bitcoiners had complained about the hassle involved in purchasing a Tesla with BTC. However, Tesla has hinted at the possibility of resuming the acceptance of the Bitcoin cryptocurrency as a payment alternative.

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