As a seasoned researcher who has been following the cryptocurrency market for years now, I find it intriguing to see how companies like Tesla navigate their investments in this volatile space. The recent movements of Tesla’s Bitcoin stash have sparked quite a frenzy among crypto enthusiasts and investors alike.
It’s possible that electric vehicle company Tesla retained ownership of its Bitcoin holdings valued at around $780 million, even after moving those funds to unspecified digital wallets on October 15, based on the analysis by a blockchain research group.
According to Arkham Intelligence, our previous report from last week suggested that the Bitcoin holdings of Tesla may not have been sold, but rather, the Bitcoin was moved within the company’s wallet, which is known as a ‘wallet rotation’.
On October 15th, Tesla distributed approximately 11,509 Bitcoins across seven different wallets, with each wallet containing between 1,100 and 2,200 Bitcoin. According to Arkham’s observations, the wallet addresses “1Fnhp” and “1LERL” received the largest portions worth around $142.2 million and $128.1 million respectively.
Initially, the large-scale transactions sparked concerns about a possible market crash, leading to heightened apprehension on social media sites such as X.
But the wallets haven’t moved any Bitcoin funds since Oct. 15, Arkham’s data shows.
Bitcoin’s price surge isn’t directly linked to Tesla’s transfers, as the crypto climbed by 5% from the time of Tesla’s transactions to reach $69,220 on October 21st, according to CoinGecko data. However, since then, Bitcoin has experienced a slight dip of around 2.3%, dropping to $67,600.
Arkham pointed out that although the reason is unclear, some speculate that Tesla might be transferring funds towards a custodian, possibly enabling Elon Musk’s company to obtain a loan using their Bitcoin as collateral.
Tesla currently uses Coinbase Prime Custody to store its Bitcoin.
During an upcoming earnings conference call, set for October 23rd following market close, Tesla’s top officials might disclose their strategies involving Bitcoin.
Based on Arkham’s assessment, Tesla, led by Elon Musk, ranks as the fourth-largest corporate owner of Bitcoin. Only MicroStrategy, a business intelligence company, and two Bitcoin mining firms, Marathon Digital and Riot Platforms, hold more Bitcoin, according to Bitcoin Treasuries data.
Elon Musk’s company, SpaceX, continues to maintain approximately 8,285 Bitcoins valued at around $560 million, making it one of the top seven Bitcoin holdings among privately owned businesses.
Tesla first purchased Bitcoin in February 2021, buying $1.5 billion worth of the cryptocurrency.
In March 2021, Tesla’s CEO, Elon Musk, momentarily agreed to accept Bitcoin for the company’s cars, however, he retracted that decision just a few weeks afterward.
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2024-10-23 03:34