Tesla Retains Ownership of $780 Million in Bitcoin Despite Recent Transfers

According to blockchain analytics firm Arkham, Tesla continues to hold its substantial Bitcoin reserves valued at approximately $780 million, even after recent large transfers to unknown wallets.

Details of the Transfers

On October 15, Tesla executed transactions involving its total holding of 11,509 Bitcoin, distributing the assets across seven wallets. These wallets contained between 1,100 and 2,200 BTC, with the most significant transfers amounting to:

• Wallet “1Fnhp”: $142.2 million
• Wallet “1LERL”: $128.1 million

Market Reactions

The transfer of such a large amount of Bitcoin raised concerns about a potential market dump, leading to discussions across various social media platforms. However, since the transfers took place on October 15, the associated wallets have not executed any further transactions with Bitcoin.

Bitcoin Price Movement

Interestingly, the Bitcoin market did not reflect a negative impact from Tesla’s transfers. The cryptocurrency saw a 5% price increase, reaching $69,220 by October 21, although it later retraced slightly to $67,600.

Speculations and Future Plans

There remains uncertainty regarding the reasoning behind Tesla’s recent Bitcoin transfers. Some analysts suggest that the funds might have been relocated to a custodian, potentially to allow the company to secure a loan backed by its Bitcoin holdings. Currently, Tesla uses Coinbase Prime Custody for storing its Bitcoin.

The company’s upcoming third-quarter earnings call, scheduled for October 23, may provide more insight into its strategies regarding Bitcoin.

Tesla’s Standing in Bitcoin Holdings

If Arkham’s findings are accurate, Tesla would rank as the fourth largest corporate holder of Bitcoin, behind:

• MicroStrategy
• Marathon Digital
• Riot Platforms

Additionally, SpaceX, Elon Musk’s aerospace company, holds 8,285 Bitcoin valued at around $560 million, making it the seventh largest holder among private firms.

Company History with Bitcoin

Tesla made its initial Bitcoin purchase in February 2021, acquiring $1.5 billion worth of the cryptocurrency. The company briefly accepted Bitcoin as payment for its vehicles in March 2021 but discontinued this option shortly thereafter.