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Reportedly, SpaceX reduced the value of its Bitcoin by a total of $373 million and potentially liquidated all of its holdings.
The Elon Musk-led firm bounces back from 2021 and 2021 annual losses, reportedly achieving a slight Q1 2023 profit.
SpaceX Financial Statements Raise Questions About Bitcoin Holdings
The Wall Street Journal’s report on Aug. 17, which looked at the company’s financial statements, leaves uncertainty if SpaceX actually sold all of its Bitcoin:
“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.”
However, Big Four Accounting Firm Deloitte declares that, typically the accounting treatment for Bitcoin involves considering it as an “indefinite-lived intangible asset.” It states to account for Bitcoin at cost and then make adjustments if the price decreases.
Should the value of Bitcoin decline or become impaired, the company must report a write-down in its books.
After recording a decrease, the asset’s value on the balance sheet cannot be “written up.” This rule applies to any subsequent Bitcoin price increase or rebound.
This is a developing story.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.
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