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Elon Musk's SpaceX Sold $373M Bitcoin

 Elon Musk’s SpaceX selling $373 million worth of Bitcoin:

SpaceX, the aerospace technology company founded by Elon Musk, has reportedly sold all of its Bitcoin holdings and written down their value by a staggering $373 million. The news comes amid a turbulent year for the cryptocurrency market, which saw Bitcoin reach a record high of over $64,000 in April 2023, before plunging to below $30,000 in July 2023.

According to a report by The Wall Street Journal1, SpaceX recorded $373 million worth of Bitcoin on its balance sheet in 2021 and 2022 but has since decided to liquidate the crypto asset. The Wall Street Journal claims to have obtained documents related to SpaceX’s financials, which revealed that the company incurred approximately $5.2 billion in total expenses for 2022. This includes expenses related to acquiring property and equipment, as well as research and development costs, totaling $5.4 billion for both 2021 and 2022.

SpaceX’s decision to sell its Bitcoin holdings is somewhat surprising, given that Musk, who also serves as the CEO of SpaceX, publicly announced in 2021 that the firm had invested in Bitcoin. This announcement came shortly after Tesla, another company co-founded by Musk, disclosed its plan to purchase $1.5 billion worth of the cryptocurrency. Musk’s involvement in the crypto space and his endorsement of various tokens, including Dogecoin, have had a significant impact on their market values. He even temporarily changed Twitter’s logo to feature the iconic Doge Shiba Inu.

However, Musk has also faced criticism from some crypto enthusiasts for his apparent flip-flopping on Bitcoin. In May 2022, he announced that Tesla would no longer accept Bitcoin as a payment method for its electric vehicles, citing environmental concerns over the high energy consumption of Bitcoin mining. He later reversed his stance and said that Tesla would resume accepting Bitcoin if there is confirmation of reasonable (~50%) clean energy usage by miners.

According to Tesla’s Q2 2023 earnings report2, the company had sold all but $184 million worth of its Bitcoin holdings. Tesla reported it had liquidated more than 30,000 BTC in the second quarter of 2022 for $936 million — roughly 75% of its original holdings.

The timing of SpaceX’s reported Bitcoin sale is unclear, but the crypto market experienced a significant crash in 2022 amid the collapse of major firms including Terraform Labs. Many technology firms and financial institutions continue to hold Bitcoin and other cryptocurrencies.

SpaceX did not respond to Benzinga’s request to comment at press time3.

SpaceX is known for its ambitious and innovative projects, such as launching reusable rockets, sending humans to Mars, and providing global internet access through its Starlink satellites. The company has also raised billions of dollars from investors and secured lucrative contracts from NASA and the US Department of Defense.

The company’s latest venture is Starship, a fully reusable launch system that aims to transport cargo and crew to the Moon, Mars, and beyond. SpaceX is currently testing Starship prototypes at its facility in Boca Chica, Texas, and plans to conduct an orbital flight test later this year.

What do you think of SpaceX’s decision to sell its Bitcoin holdings? Do you think it will affect the future of crypto? Let me know your thoughts in the comments below. 😊

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