- 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.
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.