1 year ago
Spacex reportedly wrote down the worth of its bitcoin holdings by $373 cardinal implicit the past 2 years and sold an undisclosed magnitude of the cryptocurrency. According to reports, Tesla, different institution tally by billionaire Elon Musk, has taken a akin attack with its bitcoin holdings.
Spacex Writes Down $373M successful Bitcoin Value
On Thursday, the Wall Street Journal reported that Elon Musk’s Spacex has written down its bitcoin investments, citing documents it has seen. The quality outlet wrote:
Spacex wrote down the worth of bitcoin it owns by a full of $373 cardinal past twelvemonth and successful 2021 and has sold the cryptocurrency. Tesla has taken a akin attack with its bitcoin holdings. Musk has posted astir cryptocurrencies often implicit the years.
This led to galore headlines claiming that Spacex had liquidated its full bitcoin holdings, sending the terms of bitcoin tumbling.
However, galore radical took to societal media to constituent retired that penning down investments is simply a modular accounting signifier for businesses and does not connote that the investments person been sold oregon liquidated. For example, a institution mightiness constitute down the worth of its inventory if its marketplace worth has declined, yet clasp the inventory until it is nary longer needed.
Tesla and Spacex Adopt Similar Bitcoin Approach
Although Elon Musk revealed successful July 2021 that Spacex owned bitcoin, the details of the company’s BTC holdings stay mostly undisclosed. In contrast, determination is greater transparency regarding Tesla’s bitcoin position. According to the Wall Street Journal, some companies person adopted a akin attack to their bitcoin holdings.
During the archetypal 4th of 2021, Tesla purchased bitcoin valued astatine $1.5 billion. The institution subsequently trimmed its BTC stash twice: erstwhile besides successful Q1 2021 and the different lawsuit successful July past twelvemonth — the aforesaid years Spacex reportedly wrote down its bitcoin holdings.
In Q1 2021, Tesla sold $272 cardinal successful BTC. Musk clarified that the merchantability was “to beryllium liquidity of bitcoin arsenic an alternate to holding currency connected equilibrium sheet.” In July past year, the institution sold astir 75% of its bitcoin, which added $936 cardinal successful currency to its equilibrium sheet. Musk explained that the institution needed to “maximize” its currency presumption owed to “the uncertainty of the Covid lockdowns successful China.” The billionaire stressed:
We are surely unfastened to expanding our bitcoin holdings successful the future, truthful this should not beryllium taken arsenic immoderate verdict connected bitcoin.
Despite the 2 BTC sales, Tesla inactive owns bitcoin valued astatine $184 million, arsenic disclosed successful the company’s Q2 financials.
What bash you deliberation astir Spacex penning down its bitcoin investments? Let america cognize successful the comments conception below.
English (US) 