Bitcoin Flash Crashes and SpaceX’s Bitcoin Write-Down: What You Need to Know
Bitcoin experienced a sudden flash crash, dropping to around $25.3k, causing significant liquidations for traders. This downturn is believed to be influenced by the recent bankruptcy of Evergrande, but the main focus has shifted to SpaceX’s announcement of a write-down on its Bitcoin holdings.
Main Points:
- SpaceX’s financial documents revealed a write-down of $373 million on its Bitcoin holdings in 2021 and 2022.
- These documents also showed significant expenditures of $5.4 billion in both 2021 and 2022, attributed to asset acquisition, equipment, and research and development expenses.
- Although it is unclear if SpaceX has sold its Bitcoin stash, Elon Musk had previously confirmed the company’s ownership of Bitcoin.
- The write-down refers to the reduction in the book value of an asset when its fair market value has dropped below the carrying book value.
- Tesla, another company led by Musk, sold over 30,000 BTC in Q2 2022, generating $936 million and liquidating 75% of its initial BTC holdings.
As of now, neither SpaceX nor Musk have commented on the report, and it is unknown when exactly the Bitcoin sale occurred. Tesla’s actions with Bitcoin in the past suggest a similar pattern, with significant sales taking place. The impact of these events on the crypto market remains to be seen.
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