SpaceX, led by Elon Musk, recently adjusted the valuation of its Bitcoin holdings, reducing their estimated worth by $373 million over the past two years.
This financial move led to speculation that SpaceX had liquidated its entire Bitcoin portfolio, causing a temporary drop in Bitcoin's price.
However, the adjustment in Bitcoin valuation is a standard accounting practice and doesn't necessarily mean the assets were sold.
Tesla, another company headed by Musk, had a similar approach to its Bitcoin holdings, making substantial adjustments.
In Q1 2021, Tesla purchased $1.5 billion worth of Bitcoin and later sold $272 million to demonstrate Bitcoin's liquidity as an alternative to cash.
In July of the same year, Tesla sold about 75% of its Bitcoin holdings, acquiring $936 million in cash due to COVID-related uncertainties in China.
Musk clarified that these sales were not a lack of confidence in Bitcoin, stating they remained open to increasing their Bitcoin holdings.