As a seasoned researcher who has witnessed the crypto market’s rollercoaster ride for years, I find myself intrigued by Tesla’s recent Bitcoin moves. Last week’s transfer of their stash to multiple wallets had me on the edge of my seat, as it reminded me of a game of chess where no one really knows which pieces are pawns and which are kings.
It’s possible that Tesla has kept its $777 million worth of Bitcoin following recent transactions to various new digital wallets, leading some to ponder if a potential sale might be imminent.
Arkham Intelligence stated in their October 22 update that the transfer of Tesla’s Bitcoin to various new digital wallets was probably just a regular process of updating wallets, and the 11,509 Bitcoin remains under Tesla’s ownership.
𝗧𝗔𝗦 𝗡𝗢𝗪 𝗔𝗯𝗕𝗲 𝗦𝗘𝗥𝗔𝗟 𝗧𝗘𝗦 𝗖𝗛𝗔𝗠𝗘 𝗙𝗢𝗡𝗣 𝗦𝗨𝗕𝗔𝗟 𝗧𝗢𝗥 𝗖𝗛 𝗣𝗥𝗔𝗜𝗡𝗚 𝗦𝗮𝗻𝗱 𝗕𝗲𝘀𝗶𝘁𝗵 𝗙𝗢𝗡𝗣 𝗧𝗔𝗦 𝗖𝗛𝗔𝗠𝗘 Tesla.
We suspect that the Bitcoin transactions we reported on last week were simply rearrangements of Tesla’s Bitcoin holdings, not sales or losses of the cryptocurrency.
— Arkham (@ArkhamIntel) October 22, 2024
Last week, the electric vehicle manufacturer distributed its entire Bitcoin stash, which it has been holding since June 2022, amongst seven wallets.
According to information from Arkham, each digital wallet has more than a thousand Bitcoins. The largest amount, approximately 2,109.3 Bitcoin, which equates to around $141.4 million, is stored in the “1Fnhp” wallet. On the other hand, the “1MGM8” wallet contains the smallest amount, 1,100 Bitcoins, worth roughly $73.7 million.
Currently, at this moment, no formal statements have been issued by the company regarding the reason behind the recent fund relocation. The fact that these funds have stayed put since their transfer has helped to quell concerns about a potential sale in the cryptocurrency market.
If Tesla continues to keep its Bitcoin investment, it maintains its status as the fourth-largest corporate Bitcoin owner, with its assets worth approximately $772 million at present. Marathon Digital and Riot Platforms hold more Bitcoin than Tesla do, however. MicroStrategy is in the lead, boasting a substantial 252,220 BTC in their reserves.
Unexpectedly, without prior warning, Elon Musk’s company made a move that ignited a flurry of conjecture among cryptocurrency traders over the past week. Each trader presented their unique hypotheses regarding the possible intentions of Elon Musk’s company. Some speculated that a potential sell-off could be imminent, while others proposed the possibility that the funds were intended for donation to Donald Trump’s election campaign, given Musk’s vocal support for Trump in the past.
According to Arkham’s perspective, it seems likely that the funds are being transferred to a safekeeping service. Some analysts suggest that this change might provide an opportunity for Elon Musk’s company to utilize Bitcoin as security for obtaining a loan.
Everyone’s attention is focused on the anticipated Tesla Q3 earnings release on October 23rd, a document that should offer clarity about its current financial status and recent involvement with Bitcoin.
Nevertheless, it’s worth noting that Tesla has previously disposed of some of its Bitcoin holdings. In fact, it offloaded 4,320 Bitcoins approximately a month following its $1.5 billion purchase in February 2021. The intention behind this sale was to evaluate the ease with which Bitcoin could be converted back into cash without causing significant market disturbance.
In June 2022, I decided to part ways with a substantial amount of Bitcoin – approximately 29,160 coins. The average price at which these were sold was $20,000 per coin. This move was primarily driven by the need to bolster our company’s cash reserves, given the uncertainties surrounding the ongoing Covid-19 lockdowns in China. These lockdowns had raised concerns about our liquidity situation at the time.
Could Tesla start accepting Bitcoin again?
In March 2021, Tesla was among the pioneering businesses to start accepting Bitcoin as a form of payment for its vehicles. But, by July of the same year, the company decided to reverse this policy. Elon Musk explained that the move was due to worries about the environmental harm caused by Bitcoin mining operations. He further stated that Tesla would recommence BTC transactions once the cryptocurrency had achieved sufficient levels of renewable energy usage.
By October 2023, Bloomberg Intelligence’s Coutts noted in an interview that Bitcoin had surpassed the renewable energy benchmark, as over half of its mining processes now rely on clean energy. This is a significant factor since Elon Musk indicated that Tesla might reconsider accepting Bitcoin payments if this criterion was met.
There’s increasing talk that Tesla might resume accepting Bitcoin as a form of payment due to its commitment to sustainability and recent transactions. But so far, no definite announcement has been made about this possibility.
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2024-10-23 10:44