Elon Musk’s SpaceX, the pioneering aerospace manufacturer, has reportedly sold its entire Bitcoin holdings, according to a Wall Street Journal report. This decision led to a sharp sell-off that began late on Thursday and extended into early Friday trading.
Following the news of the sale, Bitcoin, the world’s most valuable cryptocurrency, tumbled below US$25,000. This move not only shook the crypto community but also triggered declines in stocks associated with Bitcoin, including Coinbase, Marathon Digital, and Riot Platforms.
The sale came after two consecutive years of SpaceX marking down the value of its Bitcoin holdings. With this complete divestiture, SpaceX is aligning with the actions of Musk’s other major company, Tesla Inc (NASDAQ: TSLA). As per Tesla’s 2022 third-quarter update, the electric vehicle manufacturer sold approximately 75% of its initial $1.5 billion investment in Bitcoin.
According to the Wall Street Journal, “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.”
While the exact amount of Bitcoin that SpaceX sold has not been disclosed, financial documents indicate that the company’s expenses in 2022—which encompass property acquisitions, equipment, and research and development—amounted to a total of US$5.2 billion.
Elon Musk revealed SpaceX’s Bitcoin ownership in 2021. This disclosure coincided with Tesla’s announcement of its intentions to invest $1.5 billion in the cryptocurrency, an action that contributed to Bitcoin reaching an all-time high of over $43,000 at that time.
By Friday, Bitcoin had managed to recoup some of the losses resulting from the SpaceX-induced decline, with its price hovering just below US$26,500.
