United

Bitcoin

Shiba Inu

Elon Musk

<p>SpaceX has reportedly reduced the value of its Bitcoin by a whopping $373 million and has potentially liquidated all of its holdings.&nbsp;</p>
<p>The Elon Musk-led technology firm had announced in 2021 that it held some Bitcoin. Accounting rules state that once written down, the value cannot be adjusted upwards.&nbsp;</p>
<h2 id="uncertainty-around-bitcoin-holdings">Uncertainty Around Bitcoin Holdings&nbsp;</h2>
<p>According to a report published on the 17th of August, the Wall Street Journal stated that SpaceX had recorded $373 million worth of Bitcoin on its balance sheet in 2021 and 2022. It has now reportedly sold the cryptocurrency in question. However, it is still not clear if the company has sold its entire $373 million stash. The Wall Street Journal stated in its report,&nbsp;</p>
<blockquote>
 <p>“SpaceX wrote down the value of bitcoin it owns by a total of $373 million last year and in 2021 and has sold the cryptocurrency.”</p>
</blockquote>
<p>The outlet reportedly viewed financial documents related to the firm’s finances, showing expenses of around $5.2 billion for 2022. The documents also showed expenses of around $5.2 billion towards acquiring property and equipment and towards research and developmental costs.&nbsp;</p>
<p>According to Big Four Accounting Firm Deloitte, Bitcoin is typically considered an “indefinite-lived intangible asset.” It further adds that companies should account for Bitcoin at cost and then make adjustments should the price of the asset experience a notable decrease. If the value of Bitcoin declines, companies must declare a write-down in its books, which is also referred to as impairment charges. However, the asset’s value cannot be written up after recording a decrease. This applies to all subsequent Bitcoin price increases or rebounds.</p>
<h2 id="tesla-s-revision-of-bitcoin-holdings">Tesla’s Revision Of Bitcoin Holdings&nbsp;</h2>
<p>Elon Musk had publicly announced that SpaceX had acquired crypto, Bitcoin in particular, in 2021. This announcement came after a filing with the United States Securities and Exchange Commission showed that <a href="https://cryptodaily.co.uk/2022/07/tesla-sells-936-m-of-bitcoin-reserves" rel="noopener noreferrer nofollow">Tesla</a>, another of Musk’s companies, was planning to purchase $1.5 billion worth of Bitcoin. The announcement by Tesla had played a crucial role in Bitcoin hitting a then-all-time high price of $43,000.&nbsp;</p>
<p>However, according to the company’s second-quarter earnings report for 2023, Tesla had sold all except for $184 million worth of its Bitcoin holdings. Tesla confirmed that it had liquidated over 30,000 BTC in the second quarter of 2022, netting around $936 million. This figure represented around 75% of Tesla’s original $1.5 billion worth of BTC holdings. However, since then, <a href="https://cryptodaily.co.uk/2023/07/tesla-btc-holdings-unchanged-in-2023-q2" rel="noopener noreferrer nofollow">Tesla</a> has held on to its remaining Bitcoin reserves, with the company continuing to do so in the second quarter of 2023 as well. This means the company has not purchased or sold Bitcoin for the fourth consecutive quarter, with the value of its assets holding steady at $185 million.&nbsp;</p>
<h2 id="musk-and-crypto">Musk and Crypto&nbsp;</h2>
<p>Elon Musk is one of the richest individuals in the world and has often commented on the crypto space and cryptocurrencies. Musk seems particularly fond of Dogecoin (DOGE) and had briefly changed Twitter’s iconic blue bird logo to the Shiba Inu of Dogecoin. Musk purchased Twitter for $44 billion, later rebranding the company to X, and has suggested that the platform could offer an entire financial world to users, including payment and banking services.&nbsp;</p>
<p>While Musk and his companies may hold a considerable amount of Bitcoin, he has often reaffirmed that his favorite crypto remains Dogecoin. Musk has not given any reason for his admiration for Dogecoin, simply stating that “it has the best humor, and it has dogs.”</p>
<blockquote>
 <p>“I’m not advising anyone to buy crypto or bet the farm on Dogecoin or anything like that.”</p>
</blockquote>
<p>Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p>

SpaceX sold $373M worth of Bitcoin acquired in 2021-2022

Table of Contents

Crypto Daily™

Other articles published on Aug 18, 2023

Join our free newsletter for daily crypto updates!