Tesla appears to be holding firm to its $777 million Bitcoin portfolio following last week’s transfers to various new wallets, which had raised speculation of a possible sell-off. According to a report from Arkham Intelligence on October 22, these wallet movements are likely routine rotations, confirming that the 11,509 BTC remains under Tesla’s ownership.
The electric vehicle manufacturer, which has maintained its Bitcoin holdings since June 2022, distributed its entire stash among seven wallets last week. Arkham’s data indicates that each of these wallets contains over 1,000 BTC, with the largest holding, 2,109.3 BTC (approximately $141.4 million), stored in the “1Fnhp” wallet, while the smallest, 1,100 BTC (valued at around $73.7 million), resides in the “1MGM8” wallet.
As of now, Tesla has not issued any official statements regarding the reasoning behind these transfers. However, since the funds have remained untouched post-transfer, this development has alleviated immediate concerns regarding a market sell-off.
Should Tesla indeed be retaining its Bitcoin assets, it would continue to hold the title of the fourth-largest corporate Bitcoin holder, with a valuation of $772 million at present, trailing only behind Marathon Digital and Riot Platforms. MicroStrategy leads significantly with a staggering 252,220 BTC in its reserves.
The unexpected movement of Bitcoin has fueled a flurry of speculation within the crypto trading community. While some traders feared a sell-off was imminent, others suggested that the funds could potentially be allocated for political donations, particularly considering Elon Musk’s support for Donald Trump. However, Arkham analysts propose a more plausible theory: the funds could be transitioning to a custodian, potentially allowing Tesla to use its Bitcoin as collateral for securing a loan.
All eyes are on Tesla’s upcoming Q3 earnings report set for October 23, which is anticipated to shed light on the company’s financial strategies and recent Bitcoin maneuvers.
Tesla’s history with Bitcoin sales is notable; the company sold 4,320 BTC shortly after its initial $1.5 billion acquisition in February 2021, partly to test the liquidity of Bitcoin without affecting market stability. Later, in June 2022, Tesla offloaded 29,160 BTC at an average price of $20,000 per coin, a move Musk attributed to strengthening the company’s cash reserves amid uncertainties from COVID lockdowns in China.
Looking ahead, the prospect of Tesla accepting Bitcoin as payment once more remains a topic of interest. In March 2021, Tesla became one of the first major companies to accept Bitcoin for vehicle purchases but reversed this decision just months later, citing environmental concerns tied to Bitcoin mining. Musk stated that the company would consider resuming Bitcoin transactions once the cryptocurrency reached sufficient clean energy levels.
Recent comments from Bloomberg Intelligence suggest that Bitcoin mining has surpassed the renewable energy threshold, with over 50% of operations now powered by clean energy— a critical factor Musk previously identified. This shift toward sustainability has sparked renewed speculation that Tesla may soon revisit the option of accepting Bitcoin as a payment method, although no official announcements have yet been made.
Related topics:
FBI Arrests Eric Council Jr. for SEC X Account Bitcoin ETF Hack
Cryptomist X Account Hacked in Job Offer Scam
Major Exchanges Set to List X Empire Token ($X) on October 24
