On-chain data shows Tesla retains all of its Bitcoin holdings, dispelling recent speculation about a possible sale. Last week, blockchain analysis firm Arkham Intelligence reported that Tesla had transferred all of its assets, 11,509 BTC (currently worth more than $776 million), to a new, unidentified wallet.
The big move sparked speculation that Elon Musk's Tesla would sell its Bitcoin assets again. However, Arkham Intelligence updated its findings to suggest that the transfer was made internally and that Tesla still owns the Bitcoin.
Tesla holds all 11,509 Bitcoins
In a statement regarding X, Arkham revealed: “We believe the Tesla wallet movement we reported last week was a rotation of wallets using Bitcoin that Tesla still owns.Tesla transferred all of its 11,509 BTC ($776.9 million) balance to the new wallet. I have moved.”
The company discovered that the coins were redistributed to seven wallets. Each wallet received a test transaction, and all but one held an approximate number of BTC, suggesting strategic relocation rather than liquidation. “Bitcoin was split into 7 wallets holding between 1,100 and 2,200 BTC. All holding wallets received test transactions and all but one hold an approximate number of BTC ” Arkham wrote via X.
Tesla’s BTC is currently held in the following wallet addresses: 1Fnhp – 2,109.3 BTC ($142.2 million), 1LERL – 1,900 BTC ($128.1 million), 1D6Vh – 1,800 BTC ($121.3 million) ), 16QZn – 1,700 BTC ($114.6 million), 1QC2z – 1,600 BTC ($107.8 million), 1Phab – 1,300 BTC ($87.6 million), and 1MGM8 – 1,100 BTC ($74.1 million).
Arkham added: “Some speculate that this is a move to a custodian, for example to secure a loan against BTC.” Speculation that Tesla is transferring BTC to a custodian to secure financing is consistent with the practice of companies using crypto assets to gain liquidity without selling them outright. .
The timing of these developments is particularly noteworthy. Tesla is scheduled to announce its next financial results today after the market closes on October 23, 2024 (23:30 CET). The upcoming earnings release could provide further insight into Tesla's BTC strategy and the rationale behind recent wallet activity.
Adding further historical context, yesterday, October 22nd, marked the 6th anniversary of Elon Musk's first public endorsement of Bitcoin at X. Six years ago, BTC price was as low as $6,400. On that day in 2018, Musk playfully engaged with his followers by sharing an image and commenting, “Would you like to buy some Bitcoin?” Since then, BTC has soared more than 1,000%.
✨ Elon Musk tells you to buy #bitcoin Just six years ago, it was $6,000.
1,000% increase since 💫 pic.twitter.com/1UqsyODZqv
— Bitcoin Historian (@pete_rizzo_) October 22, 2024
The relationship between Tesla and Bitcoin is dynamic. The company made headlines in February 2021 when it purchased $1.5 billion worth of BTC, as revealed in a filing with the Securities and Exchange Commission (SEC). This move made Tesla one of the largest corporate holders of BTC.
However, in the second quarter of 2022, Tesla exchanged 75% of its BTC holdings into fiat currency. The decision was said to be due to liquidity concerns due to the coronavirus lockdown in China. The sale amounted to approximately $936 million, as reported in Tesla's quarterly results.
At the time of writing, BTC was trading at $67,083.
Featured image from Shutterstock, chart from TradingView.com
