Tesla didn’t sell its Bitcoin—could BTC payments be back on the table?

Tesla may still be holding on to a $777 million Bitcoin stash after transfers to multiple new wallets last week, sparking speculation that a sell-off could be imminent.

In a follow-up on October 22, Arkham Intelligence noted that recent movements of Tesla’s Bitcoin into multiple new wallets were likely just routine wallet rotations, and that 11,509 BTC “still belongs to Tesla.”

𝗨𝗣𝗗𝗔𝗧𝗘: 𝗧𝗘𝗦𝗟𝗔 𝗕𝗜𝗧𝗖𝗢𝗜𝗡 𝗪𝗔𝗟𝗟𝗘𝗧𝗦

We believe that the Tesla wallet movements we reported last week are wallet rotations where Bitcoin is still owned by Tesla.

Tesla moved the entire balance of 11,509 BTC ($776.9 million) to new wallets. pic.twitter.com/aWeHrwjo22

— Arkham (@ArkhamIntel) 22 October 2024

Last week, the electric vehicle maker distributed its entire Bitcoin stash, which it had been holding since June 2022, among seven wallets.

Arkham’s data shows that each wallet contains more than 1,000 BTC. The largest balance, 2,109.3 BTC, worth approximately $141.4 million, is in the “1Fnhp” wallet, while the smallest balance is in the “1MGM8” wallet, with 1,100 BTC, worth $73.7 million.

Tesla’s Bitcoin transfers in various transactions | Source: Arkham Intelligence

As of press time, there has been no official statement from the company explaining why the funds were moved. However, funds have remained stable since the transfer, easing rumors of a sell-off in the crypto market.

If Tesla is indeed holding Bitcoin stock, it remains the fourth largest institutional holder of Bitcoin, behind Marathon Digital and Riot Platforms, with assets worth $772 million at the time of this writing. Meanwhile, MicroStrategy continues to lead the way with a whopping 252,220 BTC in reserves.

The sudden, unannounced move sparked a wave of speculation among crypto investors last week, with each offering their own theories on what Elon Musk’s company might be up to. While some feared a potential sell-off was on the horizon, others suggested the funds could be allocated as donations to Donald Trump’s election campaign; Given that Musk is actively campaigning for Trump.

A more plausible scenario, according to Arkham, is that the funds could be transferred to a custodian. Some observers think the move could pave the way for Elon Musk’s firm to use Bitcoin as collateral to secure the loan.

All eyes are on Tesla’s third-quarter earnings report, which is due to be released on October 23 and is expected to provide insight into the company’s financial health and recent Bitcoin activity.

But Tesla is no stranger to selling its Bitcoin. The company first sold 4,320 BTC just a month after its $1.5 billion purchase in February 2021, in an attempt to test how easily Bitcoin could be liquidated without impacting the market.

Then in June 2022, Tesla sold another 29,160 BTC at an average price of $20,000 per coin. At the time, Musk explained that the reason for this larger sale was to strengthen Tesla’s cash position amid uncertainty around Covid quarantines in China, which created concerns about the company’s liquidity at the time.

Could Tesla start accepting Bitcoin again?

Tesla became one of the first major companies to accept Bitcoin as payment for its cars in March 2021. But just a few months later, the company reversed this decision after Musk expressed concerns about the environmental impact of Bitcoin mining. He added that Tesla will continue to purchase BTC once the cryptocurrency reaches the desired clean energy levels.

Fast forward to October 2023, Bloomberg Intelligence’s Coutts noted in an interview that Bitcoin has passed the renewable energy threshold, with more than 50% of its mining now powered by clean energy; This is an important benchmark set by Musk for Tesla to reconsider Bitcoin payments.

With this shift towards sustainability, speculation is growing that Tesla may soon reconsider accepting Bitcoin as payment, especially after its recent transfers. However, no official statement was made on the subject.