SpaceXโs Bitcoin write-down report on Aug. 18 sparked confusion among the crypto community. The report published in The Wall Street Journal puzzled many, who questioned whether SpaceX held $373 million worth of Bitcoin (BTC) and sold it in 2021โ2022 or whether they only reduced their Bitcoin exposure by the same amount.
Several social media outlets reported that SpaceX had sold its entire BTC holdings, while others expressed uncertainty, claiming they were unable to confirm the amount based on the wording of the report.
I actually read the WSJ report. I think @BitcoinMagazine is wrong here
Yes, the report claims that SpaceX marked down the value of their bitcoin by 373m (btw, that doesn’t mean they SOLD 373m) and sold *some*, but selling some doesn’t necessarily mean they have no bitcoin left https://t.co/rLgwA0N8Zi pic.twitter.com/GSrOio7zku
โ Pledditor (@Pledditor) August 17, 2023
Elon Musk revealed in 2021 that SpaceXย holds Bitcoin, as doesย Tesla, on its balance sheet. While Teslaโs Bitcoin holdings were made public, there were no estimations around SpaceXโs BTC holdings, which has been key to the ongoing confusion. Tesla once held $1.5 billion worth of BTC purchased during the bull market but revealed it had sold 72% of its holdings in Q2 2022.
The SpaceX write-off claims were also believed to be one of the key catalysts behind the $2,000 BTC price drop, although several others denied it being a cause. Musk hasnโt addressed the issue yet, but the market FUD made him a target of Bitcoin proponents who questioned his strategy of buying high and selling low, while a few others calledย it market FUD.
Buy High & Sell Low – Elon Musk’s #Bitcoin strategy for Dummies https://t.co/yBKsPdg59B
โ Matt Cโก๏ธ (@mithcoons) August 17, 2023
One Reddit user wroteย that Musk is running out of cash across all his companies, suggesting that Musk might sell โall of his Bitcoin and doge within the next 6 months.โ
Related: Elonโs โnot afraid of blowing things upโ โ Ex-Twitter exec on working under Musk
Users on X (formerly known as Twitter) also called out Musk for his โpaper hands,โ a term used for those who sell their BTC holdings prematurely. Others linked the BTC write-down to Xโs ambition of becoming a payment giant.
Musk appears to be going to toe-to-toe against #Bitcoin with his X empire.
I wish him well, although I don’t think this is wise. https://t.co/WFmOdVBh1E
โ Dr. Jeff Ross (@VailshireCap) August 17, 2023
While the dilemma around SpaceXโs BTC holdings continues, Bitcoin proponents advocated traders to hodl BTC and not fall for market FUD.
@SpaceX didn’t sell its Bitcoin, and neither did@ElonMusk. Now sit back and relax, just some intelligent guys getting 700+ million in longs. Don’t leverage, be patient and just #HODL.
โ Lodewyck Berghuijs (@LodewyckBTC) August 18, 2023
Bitcoinโs price was trading at $26,433 at the time of writing, having overcome the $26,000 resistance level. BTCโs price decline of 9% last night also led to a sharp downturn in the altcoin market where top altcoins recorded a double-digit decline.
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