- Tesla transferred 11,509 Bitcoin on Oct. 15, causing speculation of a potential market impact.
- Blockchain analysts believe Tesla still holds its Bitcoin, likely moving funds for custody or other reasons.
- Bitcoin’s price rose 5% after the transfer, showing no significant sell-off from Tesla’s actions.
Tesla’s large Bitcoin transfers on October 15 sparked fears of a possible market sell-off, but blockchain analytics firm Arkham Intelligence now believes the company likely retains ownership of the funds. According to Arkham’s October 22 analysis, Tesla divided its 11,509 Bitcoin, valued at $780 million, across seven new wallets, though none of the funds have moved since the transfers.
Bitcoin Holdings Remain Intact
Arkham Intelligence reported that Tesla’s wallet movements likely represent a wallet rotation rather than a liquidation of assets. This conclusion came after analyzing the destination wallets, with the largest portions going to addresses identified as “1Fnhp” and “1LERL,” which received $142.2 million and $128.1 million worth of Bitcoin, respectively. Despite initial fears of a sell-off, Bitcoin’s price has climbed by 5% since the transfer, suggesting no major market disruptions.
Tesla has not provided any clarity on why the transfers were made. Some speculate that the Bitcoin might have been moved to a custodian to secure a potential loan, though this remains unconfirmed. Tesla currently uses Coinbase Prime Custody to store its cryptocurrency assets.
Source: Bitcoin.com
Tesla’s Corporate Bitcoin Holdings Among the Largest
If Arkham’s assessment is correct, Tesla continues to rank as the fourth-largest corporate Bitcoin holder globally, trailing behind firms such as MicroStrategy and Bitcoin mining companies Marathon Digital and Riot Platforms. Additionally, Elon Musk’s other business, SpaceX, holds 8,285 Bitcoin worth $560 million.
Tesla first invested in Bitcoin in February 2021, purchasing $1.5 billion of the cryptocurrency. Although Tesla briefly accepted Bitcoin as payment for its vehicles, the company halted that decision within a few weeks due to environmental concerns.
