Key Points
- Tesla’s recent Bitcoin transfers to multiple wallets were likely routine wallet rotations, not indicative of a sell-off.
- Tesla remains the fourth-largest corporate Bitcoin holder, potentially using Bitcoin as collateral for securing a loan.
Tesla’s recent transfer of its $777 million Bitcoin stash to multiple new wallets was likely a routine wallet rotation rather than a hint of a potential sell-off.
Arkham Intelligence, in a follow-up on October 22, confirmed that Tesla still owns the 11,509 BTC that were moved.
Details of the Wallet Transfers
Tesla, the electric vehicle manufacturer, distributed its entire Bitcoin stash, held since June 2022, among seven wallets last week.
Data from Arkham reveals that each wallet holds over 1,000 BTC. The “1Fnhp” wallet has the largest balance of 2,109.3 BTC, worth around $141.4 million, while the “1MGM8” wallet holds the smallest sum of 1,100 BTC, valued at $73.7 million.
Despite the transfers, there have been no official announcements from Tesla, and the funds have remained stationary since the transfer, quieting sell-off rumors.
Tesla’s Position in the Crypto Market
If Tesla still holds onto its Bitcoin stash, it remains the fourth-largest corporate Bitcoin holder, with its holdings valued at $772 million. It stands behind Marathon Digital and Riot Platforms, while MicroStrategy leads with a massive 252,220 BTC in its reserves.
The unexpected move by Tesla sparked speculation among crypto traders, with theories ranging from potential sell-offs to donations for Donald Trump’s election campaign.
Arkham suggests a more plausible scenario might be that the funds are shifting to a custodian, possibly paving the way for Tesla to use the Bitcoin as collateral for a loan.
The upcoming Q3 earnings report from Tesla on October 23 is expected to shed light on its recent Bitcoin activity.
Tesla has previously sold off its Bitcoin. It first sold 4,320 BTC a month after its $1.5 billion acquisition in February 2021, to test its liquidity. Later, in June 2022, it sold another 29,160 BTC at an average price of $20,000 per coin, to strengthen its cash position amidst Covid lockdowns in China.
Will Tesla Accept Bitcoin Again?
Tesla was one of the first major firms to accept Bitcoin as payment for its cars in March 2021, but later reversed the decision due to environmental concerns over Bitcoin mining.
However, Bitcoin has now crossed the renewable energy threshold, with more than 50% of its mining powered by clean energy. This development has led to speculation that Tesla might reconsider accepting Bitcoin as payment, especially following its recent transfers. No official announcement has been made yet.