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Tesla’s Bitcoin Holdings Remain Untouched After Wallet Movements in Q3

Sentiment Status: Neutral

Tesla has confirmed that it did not sell any of its Bitcoin holdings during the third quarter of 2024. According to its Q3 earnings report, the company’s Bitcoin reserve remains intact, standing at 11,509 BTC, valued at approximately $765 million.

Speculation Over Wallet Transfers

Tesla made headlines when it transferred over $760 million worth of Bitcoin from its public wallet. The move involved several transactions, including amounts of $75.18 million, $76.08 million, and $77.16 million. While these transfers led to immediate speculation that Tesla might sell its Bitcoin, it was later revealed that these movements were simply for security purposes. Arkham Intelligence, a blockchain analytics firm, clarified that the wallet transfers were “wallet rotations,” meaning the assets were moved to newer wallets to enhance security. No Bitcoin was sold or exchanged.

Tesla’s Long-Term Bitcoin Strategy

Tesla’s decision to hold on to its Bitcoin comes as no surprise, as the company has long embraced cryptocurrency as part of its balance sheet strategy. After initially investing $1.5 billion in Bitcoin in early 2021, Tesla made headlines by selling 75% of its holdings in Q2 2022, generating $936 million in proceeds. Since then, Tesla’s Bitcoin holdings have remained stable at 11,509 BTC.

Despite market fluctuations, Tesla has held firm on its cryptocurrency investment, even as Bitcoin prices have experienced turbulence throughout the year. Tesla’s ongoing investment in Bitcoin is viewed as a positive indicator for the market.

Tesla Financial Performance

Tesla’s Q3 earnings report revealed strong financial performance, with the company achieving a gross margin of 19.8%, an improvement over the previous quarter’s 18.0%. However, revenue came in slightly below expectations at $25.1 billion, compared to the estimated $25.4 billion. Despite this, Tesla’s year-over-year revenue growth was an impressive 8%.

In addition to its automotive and clean energy businesses, Tesla’s continued investment in Bitcoin has become a key aspect of its financial strategy. The company remains one of the largest corporate holders of Bitcoin, alongside Musk’s other venture, SpaceX, which reportedly owns $560 million worth of Bitcoin.

About the Author

Ex-crypto miner and crypto enthusiast since 2019.

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