Elon Musk's SpaceX has unloaded millions of dollars worth of Bitcoin, sending the top cryptocurrency's price tumbling by a staggering nine percent.
A recent report shed light on the cryptocurrency holdings of Musk's giant exploration firm.
Elon Musk's SpaceX Unloads Millions of Bitcoin Holdings
SpaceX, Twitter and electric car maker Tesla CEO Elon Musk speaks during an event at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition centre in Paris, on June 16, 2023.
Musk's SpaceX has set off shockwaves across the cryptocurrency universe by revealing the sudden sale of millions of dollars worth of Bitcoin holdings.
According to The Wall Street Journal, a SpaceX document gave a glimpse into the secretive finances of the giant tech firm. It dived into the private firm's profit in the first quarter of 2023 at a staggering $55 million. Meanwhile, the revenue is at a whopping $1.5 billion.
The rocket launcher's documents also shed light on how the giant firm handled its cryptocurrency portfolio in the past years. SpaceX wrote down the value of its Bitcoin assets to a cool $373 million in 2022. In 2021, the Musk-led firm sold its crypto holdings.
The Coin Telegraph reports that the wealthiest man in the world disclosed in 2021 that SpaceX dipped its toes in the speculative world of cryptocurrency. The giant rocket maker invested millions worth of Bitcoin.
Last year, or in 2022, to be precise, Musk's electric vehicle (EV) firm Tesla sold the bulk of its Bitcoin portfolio. As per CNBC's report, the giant carmaker bought roughly $1.5 billion of the highest-valued cryptocurrency. But later on, the automaker sold around 75 percent of its total holdings.
The news of SpaceX's Bitcoin selloff, which occurred throughout 2021 and 2022, surprises many.
The company's involvement in the cryptocurrency world has long been a subject of speculation, with Musk himself known for his influential tweets that can send digital asset values soaring or crashing. The exact motivations behind SpaceX's decision to part ways with its Bitcoin reserves remain shrouded in mystery.
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Bitcoin Price Tumbles by 9%
A man shows a souvenir coin depicting a bitcoin in Caracas on September 17, 2021. - According to a study by several universities, 96% of the population lives in poverty so video games that involve non-fungible tokens (NFTs) have unleashed a boom among the population that dreams with having a plant (Plant Vs Undead) that allows them to earn a bitcoin to get out of poverty.
Following the news uncovering SpaceX's unloading of Bitcoin, the price of the highly speculative asset dropped by over eight percent, Coin Metrics data shows.
A Bitwise Asset Management researcher Ryan Rasmussen told CNBC that the latest Bitcoin price drop is historical. The expert says, "This is one of the most brutal minute-by-minute selloffs [we have] seen in the history of Bitcoin." And as some speculate, the aggressive decline is tightly tied to the Elon Musk-SpaceX news.
Bitcoin is currently trading at around $26,000 following the massive selloff.
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