SpaceX, the spacecraft engineering company owned by Elon Musk, sold all its holdings in Bitcoin, a Wall Street Journal report revealed, leading to a sharp sell-off late on Thursday and into early Friday trading.
The world's largest cryptocurrency dropped below US$25,000 after the sale was revealed, causing a ripple effect across the crypto community and leading to declines in Bitcoin-related stocks like Coinbase, Marathon Digital and Riot Platforms.
Having completely divested its Bitcoin holdings after two consecutive years of markdowns in the value of its holdings, Space X followed in the footsteps of Musk’s Tesla Inc (NASDAQ:TSLA) which, according to its 2022 third-quarter update, sold approximately 75% of its initial $1.5 billion investment.
"SpaceX wrote down the value of Bitcoin it owns by a total of $373 million last year and in 2021 and has sold the cryptocurrency," the Wall Street Journal said.