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SpaceX sell all of its Bitcoin holdings
20 Aug 2023
Elon Musk's SpaceX is said to have disposed of all of its Bitcoin assets and reduced its holdings
Elon Musk's SpaceX, an aerospace technology company, is said to have disposed of all of its Bitcoin assets and reduced its holdings by $373 million. The Wall Street Journal was able to get internal financial records from SpaceX that serve as evidence of this sale. The filings state that in 2021 and 2022, SpaceX listed $373 million in Bitcoin on its balance sheet but subsequently chose to sell the digital currency.
Although the reason for the sale is unclear, several potential causes include:
For its large-scale initiatives like Starlink, Starship, and Mars colonisation, SpaceX needs to raise money.
After the cryptocurrency market fell in 2022 as a result of the failure of FTX, as one of many reasons, SpaceX particularly wanted to avoid the volatility and risk involved with holding Bitcoin.
SpaceX followed Tesla's lead, another Musk-founded business, which sold 75% of its Bitcoin holdings in 2021 after receiving criticism from authorities and environmentalists for its cryptocurrency investment.
Musk's shifting opinions on cryptocurrencies, which have been mirrored in his tweets and public remarks, had an impact on SpaceX. While openly endorsing Dogecoin, Musk has also voiced his displeasure with Bitcoin's energy use and negative environmental effects.
The potential consequences of SpaceX's sale on the cryptocurrency market is yet to be determined, although some outcomes are possible:
Due to the sale's lack of faith and support from one of the most important personalities in the tech sector, it may have a negative effect on the value and perception of Bitcoin and other cryptocurrencies.
The sale may encourage new participants to enter the market and challenge Bitcoin's dominance, which might lead to more innovation and acceptance of cryptocurrencies.
The sale may or may not affect the market, depending on other variables, such as the expansion of institutional and retail investor interest in and demand for cryptocurrencies, as well as the advancement of crypto technology and laws.