Tesla Keeps All 11,509 Bitcoin, Dispelling Sale Rumors

Recent on-chain data reveals that Tesla Inc. still holds all 11,509 Bitcoin in its possession, quelling rumors about a potential sale. Last week, blockchain analytics firm Arkham Intelligence reported that Tesla had transferred its Bitcoin, valued at over $776 million, to new, unidentified wallets.

This large movement fueled speculation that Tesla, led by Elon Musk, might be selling off its Bitcoin holdings. However, Arkham later updated its findings, clarifying that these transfers were internal, and Tesla has not sold any of its cryptocurrency.

In a statement shared on social platform X, Arkham explained that the movements were part of a wallet restructuring, and Tesla still owns all of its Bitcoin. The company redistributed its 11,509 BTC across seven different wallets, each receiving test transactions before final transfers. The new wallets now hold amounts ranging from 1,100 BTC to 2,200 BTC each.

Arkham identified these wallets as follows: 1Fnhp with 2,109.3 BTC ($142.2M), 1LERL holding 1,900 BTC ($128.1M), 1D6Vh with 1,800 BTC ($121.3M), 16QZn with 1,700 BTC ($114.6M), 1QC2z holding 1,600 BTC ($107.8M), 1Phab with 1,300 BTC ($87.6M), and 1MGM8 holding 1,100 BTC ($74.1M).

There’s been speculation that Tesla might be preparing to use its Bitcoin as collateral for a loan rather than selling it outright. This would align with corporate strategies of using crypto assets for liquidity while avoiding an immediate sale.

The timing of this news is particularly relevant as Tesla is scheduled to release its earnings report today, October 23, 2024. This report could offer more insight into Tesla’s Bitcoin strategy and the reasons behind the recent wallet transfers.

It’s worth noting that this development comes just one day after the sixth anniversary of Elon Musk’s first public endorsement of Bitcoin. On October 22, 2018, when Bitcoin was priced at just $6,400, Musk playfully posted on X with the phrase, “Wanna buy some Bitcoin?” Since then, Bitcoin’s value has surged 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 involvement with Bitcoin has been eventful. In February 2021, the company made headlines by purchasing $1.5 billion worth of Bitcoin, making it one of the largest corporate holders of the cryptocurrency. However, in the second quarter of 2022, Tesla sold 75% of its Bitcoin holdings, amounting to approximately $936 million. The decision was linked to liquidity concerns during the COVID-19 lockdowns in China.

Despite these past sales, Tesla has maintained a significant position in Bitcoin, and the latest data confirms that it is continuing to hold its remaining cryptocurrency, at least for now.