Tesla’s $777M Bitcoin Stash Remains Intact After Wallet Transfers, Easing Sell-Off Fears

Tesla’s $777M Bitcoin Stash Remains Intact After Wallet Transfers, Easing Sell-Off Fears

Tesla may still be holding onto its $777 million Bitcoin stash after recent transfers to multiple new wallets, which had sparked speculation of an imminent sell-off.

On October 22, Arkham Intelligence provided a follow-up, indicating that Tesla’s recent Bitcoin movements to various wallets were likely part of routine wallet rotations. The company’s 11,509 BTC, it said, remains in Tesla’s possession.

The electric vehicle giant had spread its entire Bitcoin holdings—unchanged since June 2022—across seven wallets. Data from Arkham shows each wallet contains over 1,000 BTC. The largest, holding 2,109.3 BTC, valued at roughly $141.4 million, is labeled as the “1Fnhp” wallet, while the smallest, “1MGM8,” holds 1,100 BTC, worth around $73.7 million.

As of now, there have been no official statements from TSLA regarding the transfers. However, the funds have stayed put since the move, calming fears of a potential sell-off in the crypto market.

Should Tesla still be holding onto its Bitcoin, the company would remain the fourth-largest corporate Bitcoin holder, with its current holdings valued at approximately $772 million. Tesla is behind Marathon Digital and Riot Platforms, while MicroStrategy continues to dominate, boasting an impressive 252,220 BTC.

The unexpected movement of TSLA’s Bitcoin stash last week triggered rampant speculation among crypto traders. Some worried about a looming sell-off, while others floated more eccentric theories—such as the possibility that the funds were intended as a donation to Donald Trump’s election campaign, given Elon Musk’s vocal support for the former president.

A more plausible explanation, according to Arkham, is that TSLA may be shifting the funds to a custodian, possibly to use the Bitcoin as collateral for a loan. All eyes are now on TSLA’s Q3 earnings report, due on October 23, which could shed light on its financial standing and recent Bitcoin activity.

Tesla is no stranger to selling Bitcoin. Following its $1.5 billion acquisition of the cryptocurrency in February 2021, the company sold 4,320 BTC just a month later as a test to determine Bitcoin’s liquidity without affecting the broader market.

In June 2022, TSLA made a much larger sale, offloading 29,160 BTC at an average price of $20,000 per coin. Musk explained that this sale was driven by concerns over liquidity caused by China’s Covid lockdowns, which threatened Tesla’s cash flow.

Could Tesla resume accepting Bitcoin?

In March 2021, Tesla made headlines as one of the first major companies to accept Bitcoin as payment for its vehicles. However, just a few months later, Musk reversed the decision, citing environmental concerns tied to Bitcoin mining. He noted that Tesla would reconsider BTC payments once the network achieved sufficient clean energy usage.

Fast forward to October 2023, and Bloomberg Intelligence’s Coutts has pointed out that Bitcoin mining has now crossed the 50% threshold for renewable energy use—a key milestone that Musk had previously mentioned as a requirement for Tesla to potentially resume Bitcoin transactions.

This shift towards sustainability has reignited speculation that Tesla may once again accept Bitcoin as payment, especially in light of its recent wallet movements. However, no official announcements have been made to confirm this possibility.