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SpaceX’s Bitcoin write-down report released on August 18 generated confusion within the cryptocurrency community. The article published in the Wall Street Journal left many puzzled, raising questions about whether SpaceX possessed $373 million in Bitcoin and sold it during 2021-22, or if they merely decreased their Bitcoin exposure by that same figure.
Various social media platforms reported that SpaceX had liquidated its entire BTC holdings, while others expressed doubt, stating they could not verify the amount due to the phrasing of the report.
I actually read the WSJ report. I think @BitcoinMagazine is mistaken here.
Yes, the report indicates that SpaceX marked down the value of their Bitcoin by $373 million (by the way, that doesn’t imply they SOLD $373 million) and sold *some*, but selling some doesn’t necessarily mean they have no Bitcoin remaining https://t.co/rLgwA0N8Zi pic.twitter.com/GSrOio7zku— Pledditor (@Pledditor) August 17, 2023
In 2021, Elon Musk disclosed that SpaceX, like Tesla, holds Bitcoin on its balance sheet. While Tesla’s Bitcoin holdings were made public, there were no estimates regarding SpaceX’s BTC holdings, which has contributed to the ongoing confusion. Tesla previously held $1.5 billion in BTC acquired during the bull market but announced it sold 72% of its holdings in the second quarter of 2022.
The claims regarding the SpaceX write-off were also thought to be a significant factor behind the $2,000 drop in Bitcoin’s price, although several others refuted it as a cause. Elon Musk has yet to comment on the matter, but the market FUD has made him a target for Bitcoin advocates who questioned his approach of buying high and selling low, while others labeled it as market FUD.
Buy High & Sell Low — Elon Musk’s #Bitcoin strategy for Dummies https://t.co/yBKsPdg59B
— Matt C⚡️ (@mithcoons) August 17, 2023
One Reddit user suggested that Musk is depleting cash across all his enterprises, implying that Musk might sell “all of his Bitcoin and Doge within the next six months.”
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Users on X (formerly known as Twitter) also criticized Elon for his “paper hands,” a term used for those who sell their BTC holdings too early. Others connected the BTC write-down to X’s aspirations of becoming a payment powerhouse.
Musk seems to be going head-to-head against #Bitcoin with his X empire.
I wish him well, although I don’t believe this is a wise move. https://t.co/WFmOdVBh1E— Dr. Jeff Ross (@VailshireCap) August 17, 2023
As the uncertainty surrounding SpaceX’s BTC holdings persists, Bitcoin advocates urged traders to HODL BTC and avoid succumbing to market FUDs.
@SpaceX didn’t sell its Bitcoin, nor did @ElonMusk. Now sit back and relax, just some intelligent individuals securing 700+ million in longs. Don’t leverage, be patient, and just #HODL.
— Lodewyck Berghuijs (@LodewyckBTC) August 18, 2023
At the time of writing, Bitcoin was trading at $26,433, having surpassed the $26,000 resistance level. The 9% decline in BTC price the previous night also triggered a significant downturn in the altcoin market, where leading altcoins experienced double-digit losses.
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