SpaceX is preparing for a massive IPO scheduled for June, and there are some interesting details that have just emerged. SpaceX is a company that has held Bitcoin for years without much transparency, but everything will change once their IPO documents are made public.

So here’s the issue - SpaceX’s Bitcoin portfolio is now worth around $545 million, spread across 43 addresses stored on a custody platform. But this has dropped significantly. Last December, the same assets were worth $780 million when Bitcoin was approaching $92,500. Three months later in early February, it had fallen to $650 million. Now it’s only $545 million. That’s a loss of $235 million in value without SpaceX selling a single coin.

A major problem arises at the IPO. When their financial reports are released, there will be unrealized book losses related to Bitcoin that must be reported for each period when the price drops. This could create repeated negative headlines unrelated to their core business. Tesla has experienced this multiple times - recording hundreds of millions in Bitcoin losses without ever changing their position.

Fortunately, SpaceX is a large company with massive revenue, so the paper Bitcoin losses may not significantly impact overall valuation. But still, this shows the volatility that will soon become transparent to the public market. SpaceX’s Bitcoin holdings peaked at nearly $2 billion in late 2021, then plummeted, and since then have fluctuated between $400-800 million. They don’t appear to be active traders - just holding through every market cycle.