Tesla Holds Onto Bitcoin: Could BTC Payments Make a Comeback

Tesla appears to still be holding its substantial Bitcoin stash, valued at around $777 million, following recent transactions that saw the company transfer its Bitcoin to multiple new wallets. This move, which occurred last week, has generated speculation about a potential sell-off, but experts believe it may simply be routine wallet management.

According to Arkham Intelligence, the transfer involved all 11,509 BTC being redistributed among seven wallets. Each wallet now contains over 1,000 BTC, with the largest holding 2,109.3 BTC (approximately $141.4 million) in the “1Fnhp” wallet, while the smallest, “1MGM8,” has 1,100 BTC, valued at around $73.7 million. Despite the transfers, there have been no official statements from Tesla regarding the reasons behind this movement, which has helped quell concerns about an impending sell-off in the crypto market.

If Tesla is indeed maintaining its Bitcoin holdings, it continues to rank as the fourth-largest corporate Bitcoin holder, trailing Marathon Digital and Riot Platforms, while MicroStrategy leads with an impressive 252,220 BTC in its reserves.

The unannounced transfer has sparked various theories among crypto traders. Some speculate about a potential sell-off, while others have suggested that the funds could be allocated for donations to Donald Trump’s election campaign, given Musk’s previous support for Trump. However, Arkham posits that the funds may have been moved to a custodian, possibly to allow Tesla to use the Bitcoin as collateral for securing a loan.

Attention is now on Tesla’s upcoming Q3 earnings report scheduled for October 23, which could shed light on the company’s financial situation and recent Bitcoin activities.

Tesla has a history of selling Bitcoin, having sold 4,320 BTC shortly after its $1.5 billion purchase in February 2021 to test liquidity without market disruption. Later, in June 2022, Tesla sold another 29,160 BTC at an average price of $20,000 each to bolster its cash position amid concerns over liquidity due to Covid lockdowns in China.

Could Tesla Reconsider Bitcoin Payments?

Tesla was among the first major companies to accept Bitcoin as payment for its vehicles in March 2021. However, it reversed this decision a few months later, with Musk citing concerns about the environmental impact of Bitcoin mining. He indicated that Tesla would consider resuming Bitcoin purchases once the cryptocurrency met specific clean energy standards.

As of October 2023, Bloomberg Intelligence’s Coutts has noted that Bitcoin mining has crossed a renewable energy threshold, with over 50% of mining now powered by clean energy. This shift toward sustainability has fueled speculation that Tesla might soon reconsider accepting Bitcoin as payment, especially in light of its recent wallet transfers. However, no official announcements have been made regarding this potential development.