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Tesla Holds 11,509 Bitcoin, But is Payments Recharge Coming?

Last Updated April 25, 2024 12:42 PM
Teuta Franjkovic
Last Updated April 25, 2024 12:42 PM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Tesla still holds Bitcoin more than 11,000 worth of Bitcoin, valued at about $735 billion.
  • Meanwhile, Elon Musk’s SpaceX enters the crypto ring.
  • Crypto Twitter is abuzz over Tesla’s holdings, speculating that Tesla may resume BTC payments.

Tesla has maintained its Bitcoin holdings, as revealed in its first quarter balance sheet .

The disclosed figures show Tesla’s net digital assets, valued at $184 million, have stayed the same since the fourth quarter of 2022.

The news has prompted speculation that the electric car manufacturer may again take payment in BTC.

Tesla Holds Onto Bitcoin Despite Market Swings

The company has previously stated that these digital assets are primarily composed of Bitcoin. This continuity in holding Bitcoin underscores Tesla’s ongoing commitment to digital currency investment despite the market’s volatility.

Tesla crypto holdings
Credit: Tesla

While Tesla has embraced Dogecoin (DOGE) for payments related to certain merchandise, the company has disclosed that its holdings of the meme cryptocurrency are minimal. The electric car giant made a significant investment  in Bitcoin (BTC), purchasing $1.5 billion worth in the first quarter of 2021.

However, in the second quarter of 2022, Tesla sold 75% of its Bitcoin holdings . Elon Musk, Tesla’s CEO, explained this decision was driven by the need to enhance the company’s liquidity amid operational concerns. He specifically cited China’s Covid shutdowns.

Musk also indicated  that Tesla was open to the possibility of increasing its Bitcoin holdings in the future.

Tesla Holds Bitcoin While SpaceX Joins the Fray

Musk has revealed that another of his ventures, SpaceX, holds a significant amount of Bitcoin, in addition to his personal cryptocurrency holdings which include Dogecoin, Bitcoin, and Ethereum. Despite these investments, Musk has stated that he does not spend much time focusing on cryptocurrency. He also affirmed in November last year that none of his companies would create their own crypto token.

Crypto analytics firm Arkham  has performed an onchain analysis revealing that Tesla holds approximately 11,509 BTC across 68 addresses. Musk’s companies hold substantial cryptocurrency assets, but he himself does not actively engage in the market. Also, there are no plans to launch any company-specific tokens.

Crypto Community Speculates on New Holdings

Elon Musk’s engagement with Bitcoin has indeed been marked by significant fluctuations. In 2021, he expressed strong support for Bitcoin, with Tesla not only purchasing a large amount of BTC but also announcing plans to accept it as payment. This move was seen as a major mainstream endorsement of Bitcoin.

However, this enthusiasm was short-lived. Only weeks later, Musk took to Twitter to announce Tesla’s suspension of Bitcoin payments, citing environmental concerns related to the energy consumption of Bitcoin mining. This shift had a noticeable impact on the cryptocurrency market.

Recently, there has been speculation on Twitter about an apparent increase  in Tesla’s Bitcoin holdings. Users are debating whether Tesla is purchasing more Bitcoin and could, eventually, resume payments in BTC, or whether the changes could simply be the result of an accounting error.

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