In an unexpected move, SpaceX, the aerospace company led by Elon Musk, has reportedly made a significant adjustment to its financial portfolio. The company recently announced a write-down of $373 million on its Bitcoin (BTC) holdings over the past two years, signaling a reshaping of its investment strategy.
As reported by The Wall Street Journal, SpaceX has not only acknowledged the devaluation of its Bitcoin assets but has also hinted at the potential divestment of these holdings.
A write-down in the realm of cryptocurrency refers to a necessary adjustment in the recorded value of a digital asset on a company’s financial statements. It is an acknowledgement of the decrease in value of the crypto holdings and serves as a proactive measure to reflect the current market conditions.
In 2021, Musk made public statements revealing that SpaceX had ventured into the cryptocurrency space, specifically acquiring an undisclosed amount of Bitcoin. Around the same time, Tesla, another company under Musk’s purview, garnered attention by announcing its intention to invest a substantial $1.5 billion in the digital currency. These moves showcased Musk’s interest and involvement in the cryptocurrency market.
Strategic Shift at SpaceX
In a surprising turn of events, SpaceX’s perspective on Bitcoin has undergone a transformation. Recent reports reveal that the company’s balance sheets for both FY2021 and FY2022 initially valued its BTC holdings at a significant $373 million. However, it has now come to light that SpaceX recorded a write-down on these assets.
These developments coincide with the disclosure that the company’s expenditures in FY2022 amounted to approximately $5.2 billion, accompanied by an additional $5.4 billion allocated towards property acquisition, equipment, research, and development.
The evolving dynamics surrounding SpaceX’s Bitcoin holdings and its substantial investments demonstrate the intricate financial landscape in which the company operates.
Bitcoin price plunges
According to multiple digital currency sources, the value of Bitcoin has undergone significant volatility in conjunction with reports surrounding SpaceX’s activities. The flagship cryptocurrency experienced a notable 9% plunge, reaching a two-month low.
Coinmarketcap data reveals that Bitcoin fell below $25,500 per coin on Thursday evening, marking its lowest point since mid-June. This sudden plunge has garnered attention, emphasizing the unpredictable nature of the cryptocurrency market.
However, amidst the recent market turbulence, influential crypto analyst Credible Crypto has made a noteworthy prediction regarding Bitcoin’s price.
Despite the current downturn, Credible Crypto suggests that this could potentially mark the bottom for Bitcoin’s price. Importantly, he emphasizes that “nothing has changed with regards to HTF bullish market structure and therefore nothing has changed….” with regards to his positive outlook for BTC in the long run.
Price Action
As of writing, Bitcoin is changing hands just above $26K, down 6.82 percent in the last 24 hours.
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