Is Elon Musk's Tesla the Fourth Largest Bitcoin Holder❓

What ❓ 🤔

Oct 23, 2024

Tesla's recent Bitcoin transfers have caught attention in the cryptocurrency world. Many people initially worried these moves would cause a market drop. However, new information suggests that Tesla may still own its Bitcoin stash, valued at around $780 million.

What Happened with the Transfers

On October 15, Tesla transferred its entire Bitcoin holdings, totaling 11,509 BTC, into several unknown wallets. According to Arkham Intelligence, a blockchain analytics firm, this appears to be a routine wallet rotation rather than an indication that Tesla is selling its assets.

They confirmed that Tesla still owns all the Bitcoin despite these transfers, as noted in an X post on October 23.

How the Bitcoin Was Divided

Tesla split the Bitcoin among seven wallets, with each holding between 1,100 and 2,200 BTC. The biggest transfers went to wallet addresses “1Fnhp” and “1LERL,” which received amounts worth $142.2 million and $128.1 million, respectively.

Market Reactions

These large transfers raised concerns on social media, leading some to fear a market drop. However, Bitcoin’s price actually went up by 5%, reaching $69,220 by October 21. It has since dipped to $67,600, but the market reaction has been better than expected.

Why the Transfers Might Have Happened

The exact reason for Tesla's transfers is still unclear. Some analysts think the funds may be moving to a custodian, which could allow Elon Musk’s company to secure a loan using its Bitcoin as collateral. Tesla currently uses Coinbase Prime Custody to store its Bitcoin.

Upcoming Earnings Call

Tesla executives are expected to discuss their Bitcoin plans during the third-quarter earnings call on October 23. This call could provide more details about what the company plans to do with its cryptocurrency holdings.

Tesla's Position in the Bitcoin Market

If Arkham's information is correct, Tesla is the fourth largest corporate holder of Bitcoin, following MicroStrategy and Bitcoin miners Marathon Digital and Riot Platforms according to Bitcoin Treasuries. Additionally, SpaceX, another company owned by Musk, holds 8,285 BTC, worth about $560 million, making it the seventh largest private Bitcoin holder.

Tesla's Bitcoin Journey

Tesla started investing in Bitcoin in February 2021, buying $1.5 billion worth. Although CEO Elon Musk briefly allowed Bitcoin as payment for cars in March 2021, he changed that decision shortly after.

Tesla’s recent Bitcoin transactions have sparked interest in the cryptocurrency community. As more information comes out, especially during the upcoming earnings call, investors will be eager to understand what this means for Tesla and the wider Bitcoin market.