- Tesla’s Bitcoin holdings have increased when compared to their last earnings call.
- The crypto community has been divided on whether the increase reflects new purchases or an accounting error.
- The company’s involvement has been volatile, having initially embraced and sold Bitcoin.
Tesla’s holdings of Bitcoin (BTC) have reignited discussions within the cryptocurrency community following the addition of a tracking feature for the company’s Bitcoin wallet on the dashboard of cryptocurrency data analytics platform Arkham Intelligence.
Tesla’s Bitcoin Holdings Increase?
As of the time of writing, Tesla’s wallet holds approximately 11,509 BTC, reflecting an increase of 1,789 from the 9,720 BTC reported during the company’s last earnings call.
Sponsored
This development comes after significant activity surrounding Tesla’s involvement with Bitcoin. In February 2021, near the peak of the previous bull run, the company led by Elon Musk made a splash by purchasing $1.5 billion worth of Bitcoin and announcing plans to accept the cryptocurrency as payment for its electric vehicles.
However, this embrace of Bitcoin proved short-lived. Tesla began selling off its holdings in March 2021, with an initial sale of roughly 10%, followed by a further 75% divestiture in the second quarter of 2022.
Musk’s relationship with Bitcoin has been characterized by both support and skepticism. In 2021, he expressed optimism, even announcing plans for Tesla to hold its Bitcoin using on-chain wallets.
However, these positive sentiments quickly shifted, with Musk citing environmental concerns related to Bitcoin mining as the reason for discontinuing the acceptance of Bitcoin for car purchases.
New Purchases or Accounting Error?
The recent increase in Tesla’s Bitcoin holdings has sparked speculation within the online crypto community. On the social media platform X, users debated whether this change signifies renewed buying by Tesla or simply reflects an accounting error.
Some have suggested that the company may have begun purchasing Bitcoin after its last earnings report, with the possibility of these new acquisitions being disclosed in the upcoming call. While Tesla and Musk have remained silent, another of Musk’s ventures, SpaceX, also holds Bitcoin on its balance sheet.
On the Flipside
- The increase in reported holdings is based on data from a single source and hasn’t been confirmed by Tesla.
- On Arkham Intelligence, Tesla has not reported transactions for two years. However, the holdings went up, indicating a possible reporting issue.
Why This Matters
This unexpected increase in Tesla’s Bitcoin holdings, coinciding with new tracking features, adds another layer of intrigue to the company’s on-again, off-again relationship with the leading cryptocurrency, leaving investors and enthusiasts to speculate about its true meaning.
To learn more about BlackRock’s Bitcoin ETF and its impact on the market, read here:
BlackRock Bitcoin ETF Marks New Inflow High as BTC Claims ATH
To learn more about the recent surge in Bitcoin’s price and its possible correlation with the Dune movie franchise, read here:
