Tesla likely retains $780M in Bitcoin despite wallet transfers

Tesla, the electric car giant, appears to have retained its entire Bitcoin (CRYPTO:BTC) holding worth $780 million, even after moving the funds into unidentified wallets on October 15. 

According to Arkham Intelligence, the movement of Tesla’s 11,509 Bitcoin was part of a “wallet rotation,” which means the company likely still controls the funds. 

Arkham reported in an October 22 post on X (formerly Twitter) that the Bitcoin was divided into seven separate wallets, each holding between 1,100 and 2,200 BTC. 

The largest allocations went to two wallets identified as “1Fnhp” and “1LERL,” holding amounts valued at $142.2 million and $128.1 million, respectively. 

The transfers initially raised concerns of a potential sell-off, stirring anxiety on social media. 

However, Arkham’s findings indicated that the funds have not moved since October 15, and the shift did not affect Bitcoin’s price, which rose 5% to $69,220 by October 21 before settling back to $67,600. 

While it remains unclear why Tesla moved the Bitcoin, Arkham speculated the funds may have been transferred to a custodian to secure a loan against the asset. 

Tesla uses Coinbase Prime Custody for its Bitcoin storage, providing an additional layer of security for its substantial cryptocurrency holdings. 

If the analysis is correct, Tesla remains the fourth-largest corporate holder of Bitcoin, trailing only MicroStrategy and mining companies Marathon Digital and Riot Platforms, based on Bitcoin Treasuries data. 

SpaceX, another venture by Tesla CEO Elon Musk, holds 8,285 Bitcoin worth $560 million, ranking it as the seventh-largest private holder. 

Tesla first invested in Bitcoin in February 2021, acquiring $1.5 billion worth of the cryptocurrency. 

Although Musk briefly accepted Bitcoin for vehicle purchases in 2021, the decision was later reversed. 

Tesla executives may provide more details on the recent transfers during their upcoming third-quarter earnings call.

At the time of writing, the Bitcoin price was $67,074.44.