Interesting moment for SpaceX. Elon’s space company is about to go public, and suddenly the public needs to know it holds billions in bitcoin. Let’s take a look at what’s happening here.

According to Bloomberg, SpaceX is preparing a confidential IPO filing, possibly as early as March. The schedule envisions a listing in June that would value the company at over $1.75 trillion. They aim to raise up to $50 billion, which would break Saudi Aramco’s record from 2019. Quite ambitious.

But here’s the interesting part: in that S-1 filing, investors will discover that SpaceX owns about 8,285 bitcoins. That sounds impressive until you see how much that position is worth. In early December, the portfolio was worth around $780 million at a bitcoin price of about $92,500. By February, when the SpaceX-xAI merger was discussed, it had dropped to around $650 million with BTC around $78,000. Now, at this moment, that stack is worth about $545 million. That’s a $235 million decline in value over three months without SpaceX touching a single coin.

What this means: SpaceX’s profit reports will now show paper losses whenever bitcoin declines, regardless of whether the company sells anything or not. Every quarterly result will include that volatility. That brings us to Tesla.

Tesla provides the closest precedent and honestly not very reassuring. Musk’s automaker has booked hundreds of millions in accounting losses due to bitcoin price declines, even though it never changed its position. That caused repeated headaches that overshadowed the company. SpaceX could experience the same dynamic, but now during one of the sharpest bitcoin downturns in years instead of a rally.

That said: Tesla reported last year $94.8 billion in revenue and $17 billion in gross profit. So millions in bitcoin paper losses will likely have little impact on Musk’s companies. Interestingly, unlike Tesla, SpaceX has never sold or repurchased bitcoins. The data suggest the company simply held through every cycle.

So what do we see? SpaceX is going public on schedule with a huge bitcoin position that is now worth less than when the plan was announced. Investors will see that number on the balance sheet and wonder what it means. The schedule for the coming months will be interesting.