Data from the blockchain reveals that Tesla Inc. has kept all of its Bitcoin, countering recent rumors about a possible sell-off. Last week, Arkham Intelligence, a blockchain analytics company, reported that Tesla had moved its entire cache of 11,509 BTC—valued at over $776 million—to new, unknown wallets.
This major transaction sparked widespread speculation that Elon Musk’s Tesla might be selling off its Bitcoin again. However, Arkham Intelligence later revised its analysis, indicating that the transfers were internal and that Tesla continues to hold the Bitcoin.
Tesla Keeps All 11,509 Bitcoin
In a post on X, Arkham stated: “We believe that the Tesla wallet movements we reported last week were wallet rotations, which means the Bitcoin is still owned by Tesla. They transferred their complete balance of 11,509 BTC ($776.9M) to new wallets.”
The analytics firm observed that the coins were distributed across seven wallets. Each of these wallets received test transactions, and with the exception of one, all have a rounded BTC amount, indicating a planned strategy rather than liquidating assets. “The Bitcoin has been divided among 7 wallets containing between 1,100 and 2,200 BTC. Each wallet received test transactions, with all but one holding a rounded BTC amount,” Arkham noted on X.
Tesla’s Bitcoin is currently distributed among 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 commented, “There are speculations that this could be a transfer to a custodian, potentially to secure a loan against the BTC.” The idea that Tesla might be moving its BTC to a custodian to obtain a loan fits in with corporate strategies that utilize crypto assets for liquidity without needing to sell them outright.
The timing of these events is particularly significant, as Tesla is set to announce its next earnings report today, October 23, 2024, following the market close (23:30 CEST). The upcoming call could shed more light on Tesla’s Bitcoin strategy and the reasons behind the recent wallet transfers.
In a historical context, yesterday, October 22, marked six years since Elon Musk’s first public endorsement of Bitcoin on X. Back then, BTC traded as low as $6,400. On that day in 2018, Musk playfully interacted with followers by sharing a meme and asking, “Wanna buy some Bitcoin?” Since then, BTC has rallied by over 1,000%.
Elon Musk telling you to buy #Bitcoin at $6,000, exactly 6 years ago.
Up 1,000% ever since
pic.twitter.com/1UqsyODZqv
— The Bitcoin Historian (@pete_rizzo_) October 22, 2024
Tesla’s interaction with Bitcoin has been quite dynamic. In February 2021, the company made headlines by acquiring $1.5 billion in BTC, as it disclosed in a filing with the Securities and Exchange Commission (SEC). This positioned Tesla among the largest corporate holders of Bitcoin.
However, in Q2 2022, Tesla sold off 75% of its BTC holdings for fiat currency. This decision was made due to liquidity issues associated with COVID-19 lockdowns in China. The transaction amounted to roughly $936 million, as indicated in Tesla’s quarterly earnings report.
As of now, BTC is trading at $67,083.
Featured image from Shutterstock, chart from TradingView.com
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