SpaceX’s Aug. 18 bitcoin depreciation report caused confusion in the crypto community. The report, published in the Wall Street Journal, puzzled many who wondered whether SpaceX held $373 million worth of bitcoin and sold it in 2021-22, or if they just reduced their bitcoin exposure by the same amount.
Several social media channels reported that SpaceX had sold its entire BTC holdings, while others expressed uncertainty and claimed they could not confirm the amount based on the report’s wording.
I actually read the WSJ report. I think @BitcoinMagazine is wrong here
Yes, the report claims that SpaceX devalued their bitcoins by 373M (btw, that doesn’t mean they SOLD 373M) and sold *some*, but selling a few bitcoins doesn’t necessarily mean that they run out of bitcoin https://t.co/rLgwA0N8Zi pic.twitter.com/GSrOio7zku
— Pledger (@Pledditor) August 17, 2023
Elon Musk announced in 2021 that SpaceX holds Bitcoin on its balance sheet, as does Tesla. While Tesla’s bitcoin holdings were released, there were no estimates for SpaceX’s BTC holdings, which was key to the ongoing confusion. Tesla once owned $1.5 billion worth of BTC purchased during the bull market, but announced that it had sold 72% of its holdings in the second quarter of 2022
SpaceX’s write-down claims were also believed to be one of the main triggers for BTC’s $2,000 price drop, although several others disputed this. Elon Musk has yet to address the issue, but market FUD made him a target for Bitcoin advocates, who questioned his strategy of buying high and selling low, while some others dismissed it as market- designated FUD.
Buy High and Sell Low – Elon Musk’s #Bitcoin Strategy For Dummies https://t.co/yBKsPdg59B
— Matt C⚡️ (@mithcoons) August 17, 2023
A Reddit user wrote that Musk is running out of money at all of his ventures, while also suggesting that Musk could sell “all of his bitcoins and doges within the next 6 months.”
Related: Elon is ‘not afraid of blowing things up’ – former Twitter exec on working under Musk
Users on Other linked the BTC depreciation to X’s ambition to become a payments giant.
Musk appears to be taking on #Bitcoin with his X Empire.
I wish him the best, although I don’t think that’s wise. https://t.co/WFmOdVBh1E
— dr Jeff Ross (@VailshireCap) August 17, 2023
As the dilemma surrounding SpaceX’s BTC holdings continues, Bitcoin proponents are arguing that traders should HODL BTC and not fall for market FUDs.
@SpaceX has not sold its bitcoin and neither has @ElonMusk. Now sit back and relax, just some smart guys getting over 700 million long positions. Don’t overuse anything, be patient and just #HODL.
— Lodewyck Berghuijs (@LodewyckBTC) August 18, 2023
At the time of writing, bitcoin price is trading at $26,433 after clearing the $26,000 resistance. BTC’s 9% price drop last night also prompted a bloodbath in the altcoin market, where top altcoins posted double-digit declines.
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