Tesla’s (TSLA) recent Bitcoin (BTC-USD) shuffle has caught considerable attention. Many feared a massive market dump when the electric car giant transferred 11,509 Bitcoin to various wallets on October 15. But hold your horses! According to blockchain analytics firm Arkham Intelligence, it appears that Tesla still holds on to its entire Bitcoin stash, worth a whopping $780 million. Arkham stated, “We believe that the Tesla wallet movements that we reported last week were wallet rotations with the Bitcoin still owned by Tesla.”
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Transfers Sparked Market Anxiety
Initially, Tesla’s substantial transfers sent ripples of concern through the crypto community. Social media platforms like X were alive with speculation about a potential market crash. However, Arkham’s data suggests that the funds haven’t budged from their new locations since the transfer, calming some nerves. In fact, Bitcoin’s price actually rose by 5% from the time of the transfers, reaching $69,220 on October 21, before pulling back slightly to $67,600.
What’s Next for Tesla’s Bitcoin?
So, what does this all mean? It’s unclear why Tesla executed these transfers, but some analysts speculate they might be moving the funds to a custodian to secure a loan against their Bitcoin holdings. According to CoinTelegraph, Tesla currently employs Coinbase (COIN) Prime Custody for this purpose. Keep an ear to the ground, as Tesla executives are set to discuss their Bitcoin strategy during their upcoming third-quarter earnings call on October 23.
Elon Musk’s firm remains a significant player in the Bitcoin arena, ranking as the fourth-largest corporate holder of the cryptocurrency. To put things into perspective, Musk’s SpaceX holds 8,285 Bitcoin, valued at about $560 million. Since Tesla’s initial purchase of $1.5 billion in Bitcoin in February 2021, the company has become a prominent player—not just in the auto industry but also in the crypto world.
At the time of writing, Bitcoin is sitting at $66,419.86.
Is Tesla a Buy, Sell or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sells. Over the past year, Tesla has increased by 3%, and the average TSLA price target of $207.83 implies a downside potential of 4.7% from current levels.
