Elon Sells Bitcoin? Crypto Prices Plunge As SpaceX Writes Down BTC Holdings
Key takeaways
- SpaceX wrote down its Bitcoin holdings by $373 million in the last two years and sold the currency
- The move, reported in SpaceX’s latest earrings beat, prompted a mass sell-off in the market
- Bitcoin saw its biggest one-day drop since the FTX saga
Elon Musk’s company that one day hopes to colonize Mars, SpaceX, posted its earnings last week — but there was one detail that sent the entire crypto community into a meltdown and liquidated $1 billion off of the crypto market. We’re not even kidding. Here’s the latest.
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What’s happened with Elon?
SpaceX published its latest earnings report, where it revealed the company turned a profit in the first quarter and saw its losses halved in 2022. But the main focus ended up being that the space company has wrote down the value of Bitcoin it owns by $373 million in the past two years and has sold off the crypto.
It’s unknown how much Bitcoin the company still holds, but social media quickly whipped into a frenzy that Elon had sold off “all of” SpaceX’s Bitcoin. It isn’t the first time one of Musk’s many companies has done so — last year, it emerged that EV maker Tesla had sold around 75% of its Bitcoin holdings.
It’s not unusual to see companies write down assets, but given Elon has been such a big supporter of crypto since its inception, even getting embroiled in lawsuits over allegedly running a pyramid scheme around Dogecoin prices, it was pretty disheartening for diehard crypto fans to see the self-proclaimed crypto stan selling off assets.
What was the aftermath?
Crypto investors quickly ran for the hills as the news broke. On Thursday, more than $1 billion of digital assets were liquidated. The price of Bitcoin fell 7.2%, its most significant one-day drop since FTX collapsed in November 2022. Bitcoin is now trading at $26,000 and losing the gains made over the summer.
Bitcoin wasn’t the only crypto to suffer. Ethereum lost 6.8% of its value the same day and is now trading at $1,660. As of Friday, the total value of all crypto asserts, including stablecoins and tokens, was around the $1 trillion mark, a far cry from the $3 trillion highs seen in 2021.
The bottom line
Crypto is volatile as hell, as proven by last week’s drama. There’s no knowing when or if the value of Bitcoin, Ethereum and other digital currencies will return to their highs of two years ago, so we can see why crypto fans panicked at Elon Musk, the face of crypto, selling off the currency.
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