Tesla Keeps Bitcoin Holdings Steady Despite Market Speculation

Tesla's Q3 earnings report has confirmed that its Bitcoin holdings remain untouched despite previous concerns. The company still holds 11,509 BTC, valued at around $765 million, solidifying its position as the fourth-largest holder of Bitcoin among publicly traded U.S. companies. Tesla is ranked just behind MicroStrategy, Marathon Digital Holdings, and Riot Platforms.

Recent movements in Tesla’s Bitcoin wallets had caused speculation about a possible sale or transfer of assets. However, the Q3 report assures that the company has not made any sales. According to Arkham Intelligence, these wallet movements were done for security reasons, with Tesla’s Bitcoin now spread across seven wallets, each holding between 1,100 and 2,200 BTC.

In the financial aspect of the report, Tesla surprised many by posting a gross margin of 19.8%, an improvement from the 18.0% recorded in the second quarter. However, its revenue for the quarter, though still reflecting an 8% year-over-year increase, came in slightly below expectations at $25.1 billion, just short of the anticipated $25.4 billion. CEO Elon Musk has addressed the company's recent challenges, noting increased competition from cheaper electric vehicles as a temporary issue.

For the Bitcoin community, Tesla’s decision to hold onto its Bitcoin reserves provides a sense of optimism. The fact that no changes were made to its holdings throughout the quarter suggests that Tesla remains positive about the future of cryptocurrency. Meanwhile, SpaceX, another venture led by Musk, holds 8,285 Bitcoin, valued at $560 million, making it the seventh-largest private Bitcoin holder.

Tesla’s relationship with Bitcoin dates back to 2021, when the company briefly accepted Bitcoin as a payment method for its vehicles. Though this policy was later reversed due to environmental concerns related to Bitcoin mining, Musk has suggested that the company might reconsider accepting Bitcoin in the future if more sustainable mining practices are adopted.

With Bitcoin's price hovering around $66,500, it remains to be seen whether the confidence shown in Tesla’s quarterly report will have any lasting impact on the cryptocurrency market in the coming days.