Tesla may still be holding onto its significant Bitcoin reserve valued at $777 million, despite last week’s transfers to multiple new wallets that raised speculation of a potential sell-off.
In a follow-up report on October 22, Arkham Intelligence suggested that the recent movements of Tesla’s Bitcoin to various wallets were likely routine wallet rotations, confirming that the 11,509 BTC involved are “still owned by Tesla.” The electric vehicle manufacturer distributed its entire Bitcoin stash, which it has maintained since June 2022, among seven wallets, each containing over 1,000 BTC. The largest wallet, labeled “1Fnhp,” holds 2,109.3 BTC worth approximately $141.4 million, while the smallest, “1MGM8,” contains 1,100 BTC valued at around $73.7 million.
As of now, there have been no official announcements from Tesla regarding the rationale behind these transfers. However, the funds have remained stationary since the movement, alleviating some fears of an impending sell-off in the crypto market.
If Tesla is indeed retaining its Bitcoin holdings, it remains the fourth-largest corporate Bitcoin holder, valued at $772 million at the time of writing. It trails behind Marathon Digital and Riot Platforms, with MicroStrategy leading with a substantial reserve of 252,220 BTC.
The recent, unannounced transfer ignited a flurry of speculation among crypto traders, with various theories about Elon Musk’s intentions. While some analysts worried about a potential sell-off, others posited that the funds could be earmarked for a donation to Donald Trump’s election campaign, given Musk’s support for Trump.
Arkham speculated a more plausible scenario, suggesting the funds might be transitioning to a custodian. This move could position Tesla to use its Bitcoin as collateral for securing a loan.
Attention now turns to Tesla’s upcoming Q3 earnings report on October 23, which is expected to shed light on the company’s financial status and its recent Bitcoin activities.
Tesla has a history of selling Bitcoin; the company sold 4,320 BTC just a month after its $1.5 billion purchase in February 2021 to assess how easily Bitcoin could be liquidated without disturbing the market. In June 2022, Tesla sold another 29,160 BTC at an average price of $20,000 each, with Musk citing the need to bolster the company’s cash position amid uncertainties related to Covid lockdowns in China.
Could Tesla Resume Accepting Bitcoin?
In March 2021, Tesla became one of the first major companies to accept Bitcoin as payment for its vehicles but reversed this decision just months later, citing environmental concerns associated with Bitcoin mining. Musk indicated that Tesla would reconsider BTC purchases once the cryptocurrency met certain clean energy standards.
Fast forward to October 2023, Bloomberg Intelligence’s Coutts noted in an interview that Bitcoin has crossed the renewable energy threshold, with over 50% of its mining now powered by clean energy—meeting a key criterion set by Musk for Tesla to potentially restart Bitcoin payments.
Given this shift toward sustainability, speculation is growing that Tesla may soon reconsider accepting Bitcoin as payment again, particularly following its recent wallet transfers. However, no official confirmation has been provided on this matter.
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