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Elon Musk Companies Hold Billions in Bitcoin: Will They Sell Again?

Last Updated March 8, 2024 9:03 AM
Teuta Franjkovic
Last Updated March 8, 2024 9:03 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Tesla’s Bitcoin wallet shows a mysterious increase meaning either a new purchase or an accounting error.
  • Tesla initially invested heavily in Bitcoin but then sold most of it due to environmental concerns.
  • Musk’s companies, Tesla and SpaceX, both hold Bitcoin.

The crypto community is once again buzzing about Tesla’s Bitcoin holdings  following the addition of a wallet tracking feature to Arkham Intelligence’s dashboard.

Speculation abounds, with some users suggesting that Tesla may be acquiring Bitcoin, potentially unveiling details during its upcoming earnings call , while others ponder the possibility of an accounting discrepancy.

Tesla Boosts Bitcoin Holdings, Plans Bitcoin Payments for Cars

As of the latest update, Tesla’s Bitcoin holdings have increased  to approximately 11,509 BTC. This marks a significant uptick of 1,789 BTC from the 9,720 BTC disclosed in its previous earnings announcement.

TSLA BTC holdings
Credit: Arkham

Elon Musk’s company made a substantial investment in Bitcoin, purchasing $1.5 billion  of the cryptocurrency in February 2021 during the height of the previous market surge. Additionally, the company has revealed intentions to accept Bitcoin as payment for its vehicles.

Be it as it may, Tesla’s foray into Bitcoin adoption experienced a brief tenure . It initially sold roughly 10% of its Bitcoin holdings in March 2021. By the second quarter of 2022, the electric vehicle giant had divested approximately 75% of its Bitcoin investments.

Here’s a concise timeline detailing Tesla’s interactions with Bitcoin.

  • February 2021: Tesla invests in $1.5 billion worth of Bitcoin.
  • March 2021: Tesla offloads 4,320 BTC.
  • 2022: Tesla further reduces its Bitcoin holdings by selling 29,160 BTC.
  • 2023: Tesla’s Bitcoin balance remains static at 9,720 BTC, indicating no transactions were made during the year.

Chaning Stance on BTC – From Enthusiasm to Environmental Concerns

Elon Musk’s relationship with Bitcoin has been a rollercoaster. In 2021, he showcased a bullish outlook on BTC, revealing Tesla’s strategy to hold Bitcoin in on-chain wallets.

Yet, mere weeks after this announcement, Musk reversed his decision to accept Bitcoin as payment for Tesla vehicles, attributing the change to environmental worries surrounding the energy-intensive process of Bitcoin mining.

On Twitter, there’s speculation among users regarding the recent increase in Tesla’s Bitcoin holdings. One user pondered  whether Tesla has recommenced buying Bitcoin, or if the alteration in numbers could be attributed to an accounting mistake.

Another user proposed  that Tesla might have initiated Bitcoin purchases following their last earnings announcement, speculating these acquisitions would be disclosed in the upcoming financial report.

As of March 8, neither Tesla nor Elon Musk have made official statements concerning whether the company is actively purchasing BTC again.

SpaceX Joins Tesla in Holding Bitcoin, Prompted by Saylor’s Advice

Elon Musk’s venture, SpaceX, has added Bitcoin to its balance sheet, following a suggestion from MicroStrategy co-founder and executive chairman Michael Saylor . This move places SpaceX alongside Tesla in Musk’s portfolio of companies that hold Bitcoin. MicroStrategy itself is a major player in the Bitcoin space, with 193,000 BTC in its holdings, making it the world’s largest institutional investor in Bitcoin.

At the Bitcoin Atlantis conference  on March 1, during a panel discussion, Saylor advocated for a bright future for Bitcoin. He highlighted the potential of AI and exchange-traded funds to kickstart a decade-long “gold rush” for Bitcoin, signaling an optimistic outlook for the cryptocurrency’s future.

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