Tesla’s substantial Bitcoin transfers triggered concerns regarding a market crash; however, Arkham’s data indicates that the assets are still under the company’s control.
According to a blockchain analytics firm, Tesla, an electric car manufacturer, will likely retain ownership of its entire Bitcoin hoard, valued at $780 million, even though the funds were transferred to unidentified wallets on October 15.
Arkham Intelligence stated in an October 22 X post that they believe the Tesla wallet movements reported last week were wallet rotations, with the Bitcoin remaining under Tesla’s ownership.
Arkham observed that Tesla allocated 11,509 Bitcoin to seven wallets, each containing between 1,100 and 2,200 BTC, on October 15. The most excellent batches, valued at $142.2 million and $128.1 million, were received by wallet addresses “1Fnhp” and “1LERL.”
Initially, the substantial transfers exacerbated concerns regarding a potential market crash, causing anxiety on social media platforms such as X.
Nevertheless, Arkham’s data indicates that the accounts have yet to transfer any Bitcoin funds since October 15.
It has also not impacted the price of Bitcoin, which has increased by 5% from the time of transfers to $69,220 on October 21, according to data from CoinGecko. Bitcoin has since declined by 2.3% to $67,600.
Although the reason for transfers is unclear, Arkham noted that some observers suspect the funds may be transferred to a custodian, potentially enabling entrepreneur Elon Musk’s company to obtain a loan against Bitcoin.
Tesla’s Bitcoin is presently stored in Coinbase Prime Custody
During the third-quarter earnings call, scheduled after the bell on October 23, Tesla executives may disclose their intentions regarding Bitcoin.
According to BitcoinTreasuries data, Musk’s organization remains the fourth-largest corporate Bitcoin holder, trailing only business intelligence firm MicroStrategy and Bitcoin miners Marathon Digital and Riot Platforms, if Arkham’s analysis is accurate.
The seventh-largest Bitcoin holdings by a private firm, SpaceX, Musk’s spacecraft manufacturing business, remain at 8,285 Bitcoin valued at $560 million.
Tesla acquired Bitcoin for the first time in February 2021, purchasing $1.5 billion. Elon Musk, the CEO, momentarily permitted Bitcoin as a form of payment for the company’s vehicles in March 2021. However, he reversed his decision a few weeks later.
