SpaceX has reportedly liquidated its entire Bitcoin holdings, accompanied by a $373 million write-down.
The sale, first reported by The Wall Street Journal, indicates that SpaceX had previously recorded Bitcoin worth $373 million on its financial reports for the years 2021 and 2022. However, recent developments have led the company to devalue and subsequently sell off its cryptocurrency holdings.
Elon Musk’s involvement in the cryptocurrency world is well-documented. His announcement in 2021 that SpaceX had embraced Bitcoin followed closely on the heels of the same move by Tesla, which invested $1.5 billion in the cryptocurrency.
The financial documents examined by The Wall Street Journal showed that SpaceX’s total expenses for 2022 amounted to a $5.2 billion. These expenditures encompass a range of areas, from property and equipment acquisitions to research and development initiatives. This spending trend remained consistent, with $5.4 billion attributed to similar activities for both 2021 and 2022.
Despite the large spending figures, SpaceX recorded its first profit in Q1 2023, driven largely by increased revenue from Starlink.