Tesla Still Holding Its $777M Bitcoin Stash, Despite Last Week's Transfers

The electric vehicle manufacturer distributed its entire Bitcoin stash, which it has been holding since June 2022, amongst seven wallets.

Electric vehicle manufacturer Tesla appears to have retained its $777 million Bitcoin stash following last week’s large-scale transfers, which had sparked speculation of an impending sell-off.

In an Oct. 22 follow-up, crypto intelligence firm Arkham Intelligence stated that the recent movements of Tesla’s Bitcoin to multiple new wallets were likely just routine wallet rotations.

“We believe that the Tesla wallet movements that we reported on last week were wallet rotations with the Bitcoin still owned by Tesla,” the firm stated.

Last week, seven wallets received portions of Tesla’s Bitcoin holdings, with each wallet containing over 1,000 BTC. The largest balance, 2,109.3 BTC, sits in the “1Fnhp” wallet, while the “1MGM8” wallet holds the smallest sum, 1,100 BTC.

As of press time, there have been no official announcements from the company explaining why the funds were moved. However, the funds have remained stationary since the transfer, easing rumors of a sell-off.

If Tesla is still holding onto its Bitcoin stash, it maintains its position as the fourth-largest corporate Bitcoin holder, with its holdings valued at $772 million at the time of writing.

The sudden, unannounced move sparked a wave of speculation among crypto traders last week.

While some feared a potential sell-off was on the horizon, others suggested the funds could be earmarked as a donation to Donald Trump’s election campaign — considering Musk has actively campaigned for Trump.

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

All eyes are on Tesla’s upcoming Q3 earnings report on October 23, which is expected to provide insights into its financial position and recent Bitcoin activity.

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

Later, 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 amidst uncertainty surrounding the Covid lockdowns in China, which created concerns over the company’s liquidity at the time.

Could Tesla start accepting Bitcoin again?

Tesla became one of the first major firms to accept Bitcoin as payment for its cars in March 2021. However, just a few months later, the company reversed the decision, with Musk citing concerns over Bitcoin mining’s environmental impact. He added that Tesla would resume BTC purchases once the cryptocurrency achieved the desired clean energy levels.

Fast forward to October 2023, and Bloomberg Intelligence’s Coutts remarked in an interview that Bitcoin had crossed the renewable energy threshold, with more than 50% of its mining now powered by clean energy — a key criterion set by Musk for Tesla to reconsider Bitcoin payments.

With this shift toward sustainability, there is growing speculation that Tesla could soon reconsider accepting Bitcoin as payment once again, especially following its recent transfers. However, no official word has been given on the matter.