SpaceX, a well-known tech company led by Elon Musk, has made surprising decisions about its cryptocurrency portfolio. According to reports, the company decided to significantly reduce the value of its Bitcoin holdings, and there is speculation that they may have sold all their BTC. What really happened, and what could be the implications for the market?
SpaceX, one of the flagship tech companies led by Elon Musk, has come under the spotlight after reports of a possible sale of Bitcoin assets valued at a whopping 373 million dollars. Although the company confirmed that it held Bitcoin in 2021 and 2022, it remains unclear if the entire amount was disposed of.
A report published on August 17th by “The Wall Street Journal” highlighted that SpaceX had Bitcoin assets worth 373 million dollars on its balance sheet. Furthermore, according to the company’s available financial documents, costs related to property and equipment purchases, as well as research and development, totaled about 5.2 billion dollars in 2022.
An interesting point is how Bitcoin is treated in accounting books. As one of the largest auditing firms, Deloitte, points out, Bitcoin is often considered an “intangible asset with an indefinite lifespan.” Companies need to make adjustments in the case of a significant decrease in the value of this cryptocurrency. If the value of Bitcoin drops, companies must record a write-down, which cannot later be revised upwards, even if the price of Bitcoin subsequently rises.
SpaceX is not the only one to invest in cryptocurrencies. Tesla, another Musk-led company, had plans to purchase Bitcoin worth 1.5 billion dollars. This information played a key role in Bitcoin reaching its then record price of 43,000 dollars. Nevertheless, according to a report for the second quarter of 2023, Tesla sold nearly all its BTC assets, with the exception of assets worth 184 million dollars.
Musk, as one of the world’s wealthiest individuals, often speaks about cryptocurrencies. His interest isn’t limited just to Bitcoin. It seems that Dogecoin (DOGE) holds a special place for him. After buying Twitter for 44 billion dollars and renaming the platform to “X”, he suggested the platform might offer a wide range of financial services to users.
Although Elon Musk owns significant amounts of Bitcoin, he has often emphasized that his favorite cryptocurrency is Dogecoin. When asked why, Musk responded that Dogecoin “has the best sense of humor and has dogs.”
In light of all this information, the question remains – what decisions regarding cryptocurrencies will Elon Musk’s companies make in the near future?
