• 28 May, 2024
News

Elon Musk’s Companies Make Waves in Cryptocurrency: SpaceX Sells, Tesla Holds

SpaceX, an aerospace technology firm headed by Elon Musk, has reduced its Bitcoin holdings by $373 million over the past two years. According to a report by The Wall Street Journal, there are indications that the company may have divested its entire cryptocurrency portfolio. Financial records indicate that the company had Bitcoin assets valued at $373 million during 2021 and 2022, but the precise details of the sale remain undisclosed.

According to financial documents examined by the news organization, the firm incurred total expenses of approximately $5.2 billion in 2022. These documents also detailed expenditures of $5.4 billion in 2021 and 2022, allocated for the acquisition of property, equipment, and investment in research and development.

In 2021, SpaceX’s CEO, Elon Musk, publicly declared the company’s acquisition of Bitcoin. This announcement coincided with Tesla’s intention to invest $1.5 billion in the digital currency, a decision that likely contributed to Bitcoin’s price surge to an unprecedented high of over $43,000.

Tesla’s Q2 2023 earnings report shed light on the company’s cryptocurrency transactions, revealing that it had retained only $184 million of its Bitcoin holdings. Specifically, Tesla sold more than 30,000 BTC in Q2 2022 for $936 million, nearly 75% of its initial investment.

Musk, a prominent figure in the global financial landscape, is also known for his engagement with various digital currencies. His acquisition of Twitter in October 2022 for $44 billion, followed by its rebranding to X, has led to speculation about the platform’s potential expansion into a cryptocurrency-friendly platform.

The cryptocurrency market faced turbulence in 2022, with the downfall of several key players. Nevertheless, many technology firms and financial institutions persist in their investment in Bitcoin and other cryptocurrencies.

In a separate analysis, William Clemente, co-founder of Reflexivity Research, compared the Bitcoin holdings of various publicly traded companies. MicroStrategy, a business intelligence giant, emerged as the leader, with 152,800 Bitcoins valued at approximately $4.4 billion. Tesla was listed third, with 10,725 BTC, valued at $309.8 million. The accuracy of this data is uncertain, particularly given recent information that Tesla’s Bitcoin assets are worth $184 million.

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