- SpaceX’s financial disclosures indicate a revenue of $1.5 billion in 2022.
- Misinterpretation of SpaceX’s report caused a downturn in the Bitcoin market.
- Tesla sold 30,000 BTC in Q2 2022, generating $936 million.
Recent financial disclosures from Elon Musk’s SpaceX have sent ripples through the Bitcoin market. The private quarterly and annual reports, unveiled in the Wall Street Journal (WSJ), indicate that the aerospace manufacturer and space transportation company earned $55 million from a staggering revenue of $1.5 billion.
The company registered its inaugural profit following a loss of $559 million in 2022 against a revenue of $4.6 billion. Concurrently, it is channeling substantial resources into novel ventures, with recorded expenditures of $3.3 billion in 2021, escalating to $5.2 billion in 2022.
The Bitcoin market experienced a new wave of Fear, Uncertainty, and Doubt (FUD) following a misinterpretation of a SpaceX financial report section, which Bitcoin Magazine inaccurately tweeted. The Wall Street Journal subsequently reported this.
SpaceX wrote down the value of bitcoin it owns by a total of $373 million last year.
In essence, SpaceX has revised the reported value of its BTC holdings by standard accounting procedures. This is a common practice in the financial world, known as impairment, where the book value of an asset is reduced to reflect a decrease in its market value.
Nonetheless, Bitcoin Magazine ingeniously construed the WSJ report to imply that SpaceX had liquidated its entire Bitcoin holdings valued at $373 million.
Crypto enthusiasts rapidly appended Community Notes to the tweet, highlighting the misinformation, but the correction was not swift enough to avert a significant downturn in the BTC market. As per CoinMarketCap, the premier cryptocurrency plunged by 9% in less than 10 minutes, hitting $25,314, a price point not seen since June 16.
In 2021, Elon Musk, the CEO of SpaceX, revealed at a conference that the company holds Bitcoin in its portfolio. Furthermore, in the same year, Tesla, another company under Musk’s leadership, disclosed a significant investment in Bitcoin, amounting to $1.5 billion.
Tesla’s Q2 2023 financial results revealed that the company sold more than 30,000 BTC during the second quarter of 2022, generating $936 million. This represents 75% of its initial $1.5 billion Bitcoin investment. Tesla maintains a HODL strategy with its remaining Bitcoin assets valued at $184 million.
