SpaceX Reports First Quarter Earnings, Divests Bitcoin Holdings; Cryptocurrency crash

New SpaceX financial documents published by The Wall Street Journal provide a rare look at Elon Musk’s private rocket company. Cryptocurrency prices have swung wildly after a report late Thursday revealed that SpaceX had sold off its bitcoin holdings.


SpaceX reported profits of $55 million in the first quarter of 2023 on $1.5 billion in revenue after two years of big, but narrow losses, Wall Street Journal reported.

The Hawthorne, California-based company reported $5.2 billion in total expenses for 2022, up from $3.3 billion in 2021. Fiscal revenues for 2022 doubled to $4.6 billion with a loss of $559 million, improving from a loss of $968 million in last year.

SpaceX generated $2 billion in equity issuance capital last year, up from $1.5 billion in 2021. The company is valued at about $150 billion after selling employee stock in June.

Property and equipment expenditures totaled $5.4 billion over the past year and 2021 with significant research and development costs.

Meanwhile, the results benefited from several moves. The company has implemented price increases for Falcon rocket missions. SpaceX boosted Starlink pricing for U.S.-based subscribers in 2022. In April, SpaceX raised the price of Starlink services by 9% to $120 per month for residential customers where internet capacity is limited. Subscribers to overcapacity online sites got a price cut to $90 from $110.

The company launched a Falcon 9 rocket carrying 22 Starlink satellites on Wednesday and the Falcon 9 returned to Earth that evening. SpaceX’s next launch is scheduled for August 21st. The next launch mission in the company’s collaboration with NASA is scheduled for August 25.

SpaceX sells bitcoin holdings

SpaceX sold its bitcoin holdings after they took $373 million in value in 2021 and 2022, the Wall Street Journal reports. Tesla (TSLAIt sold 75% of its bitcoin holdings last year.

Meanwhile, the prices of bitcoin, ethereum, and other cryptocurrencies fell late Thursday, but it was not clear if the SpaceX report was the cause.

Cryptocurrency liquidations reached more than $1 billion in the past 24 hours as of Friday morning, Coinglass data appears. Bitcoin’s drop below $28,500 resulted in a liquidation of “physical volumes” of long bitcoin orders, along with spot selling ahead of order dates. That sparked a major sell-off, Decentral Park Capital trader Louis Harland told CoinDesk.

Bitcoin price fell to a low of $25,392.05 Thursday night, marking a two-month low. It is trading near $26,000 late Friday, down 6.6% over the past 24 hours. Bitcoin had already fallen from around $28,600 to $27,600 on Thursday before the SpaceX news, as a strong dollar and risk-free trading weighed on the cryptocurrency.

Ethereum slid to $1,656 late Friday from Thursday’s high of $1,790. Dogecoin fell 3.4% to 6.4 cents.

COIN stock pared losses to 3.1% on Friday after falling 4.8% in pre-market trading. Crypto miners Digital Marathon (Mara) MARA stock witnessed a decline of 7.9%, while Riot pads (riot) fell 5.5%. in the Thursday session, Coinbase (currency) fell by 4.35%, while Marathon Digital dropped 9.3% and RIOT dropped 10.6%.

You can follow Harrison Miller for more stock news and updates on Twitter @employee

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