I just realized that Elon Musk’s Bitcoin holdings in SpaceX are currently experiencing quite significant paper losses. Back in December, their stack of 8,285 BTC was worth $780 million, but now it’s down to $545 million. It fell by $235 million over 3 months without them selling a single BTC. The BTC price is also dropping—down from $92,500 to around $73,190 now—which is why the value of their assets has plunged.

Interestingly, this could become an issue for SpaceX’s IPO planned for Juni, with a valuation of more than $1,75 trillion. When they open their S-1 filing, all investors will be able to see these paper Bitcoin losses in the financial statements. Elon Musk’s rocket company has held Bitcoin for years without needing to explain anything to anyone, but after going public, every BTC fluctuation will be reflected in their quarterly reports.

Tesla is an interesting precedent here. Musk’s car manufacturer has also recorded paper losses in the hundreds of millions during the bear market, even though its position hadn’t changed. The difference is that Tesla’s revenue was huge—($94,8 billion last year)—so the paper Bitcoin losses didn’t really have much impact. SpaceX has a track record of holding Bitcoin since 2021 without ever actively trading, so it seems they’re serious long-term holders of this asset.