SpaceX’s Bitcoin write-down report on Aug. 18 sparked confusion among the crypto community. The report published in The Wall Street Journal puzzled many, who questioned whether SpaceX held $373 million worth of Bitcoin  and sold it in 2021–2022 or whether they only reduced their Bitcoin exposure by the same amount.

Several social media outlets reported that SpaceX had sold its entire BTC holdings, while others expressed uncertainty, claiming they were unable to confirm the amount based on the wording of the report.

I actually read the WSJ report. I think @BitcoinMagazine is wrong here

Yes, the report claims that SpaceX marked down the value of their bitcoin by 373m (btw, that doesn't mean they SOLD 373m) and sold *some*, but selling some doesn't necessarily mean they have no bitcoin left https://t.co/rLgwA0N8Zi pic.twitter.com/GSrOio7zku

— Pledditor (@Pledditor) August 17, 2023

Elon Musk revealed in 2021 that SpaceX holds Bitcoin, as does Tesla, on its balance sheet. While Tesla’s Bitcoin holdings were made public, there were no estimations around SpaceX’s BTC holdings, which has been key to the ongoing confusion. Tesla once held $1.5 billion worth of BTC purchased during the bull market but revealed it had sold 72% of its holdings in Q2 2022.

The SpaceX write-off claims were also believed to be one of the key catalysts behind the $2,000 BTC price drop, although several others denied it being a cause. Musk hasn’t addressed the issue yet, but the market FUD made him a target of Bitcoin proponents who questioned his strategy of buying high and selling low, while a few others called it market FUD.

Buy High & Sell Low - Elon Musk's #Bitcoin strategy for Dummies https://t.co/yBKsPdg59B

— Matt C (@mithcoons) August 17, 2023

One Reddit user wrote that Musk is running out of cash across all his companies, suggesting that Musk might sell “all of his Bitcoin and doge within the next 6 months.”

Users on X (formerly known as Twitter) also called out Musk for his “paper hands,” a term used for those who sell their BTC holdings prematurely. Others linked the BTC write-down to X’s ambition of becoming a payment giant.

Musk appears to be going to toe-to-toe against #Bitcoin with his X empire.

I wish him well, although I don't think this is wise. https://t.co/WFmOdVBh1E

— Dr. Jeff Ross (@VailshireCap) August 17, 2023

While the dilemma around SpaceX’s BTC holdings continues, Bitcoin proponents advocated traders to hodl BTC and not fall for market FUD.

@SpaceX didn't sell its Bitcoin, and neither did@ElonMusk. Now sit back and relax, just some intelligent guys getting 700+ million in longs. Don't leverage, be patient and just #HODL.

— Lodewyck Berghuijs (@LodewyckBTC) August 18, 2023

Bitcoin’s price was trading at $26,433 at the time of writing, having overcome the $26,000 resistance level. BTC’s price decline of 9% last night also led to a sharp downturn in the altcoin market where top altcoins recorded a double-digit decline.