Tesla Reassures Market, Retains $776M Bitcoin After Wallet Movements

• Tesla reassures the market by clarifying that its $776 million in Bitcoin is safe following wallet rotations.
• Despite concerns, Tesla retains its position as the fourth-largest corporate holder of Bitcoin with over 11,000 BTC.
• Elon Musk’s remarks highlight the company’s sustained interest in cryptocurrency, despite a cautious approach to payments.

According to analytics firm Arkham Intelligence, Tesla’s Bitcoin holdings remain unchanged despite recent movements to unknown wallets. 

Reassurance After Market Concerns

This month Tesla caused concern in the cryptocurrency market, by transferring its total Bitcoin holding of roughly $776 million to unknown wallets. This raised concerns about the company’s plan for the rest of the Bitcoin that is held in-store. But, as it was recently explained by Arkham Intelligence, these transfers were cross-chain swaps, implying that Tesla kept the assets. 

BTC holders are Still Committed to the Crypto Asset

Tesla’s Bitcoin involvement dates to early this year when it invested $1.5 billion in the digital currency. Major electric car sellers had accepted Bitcoins for some of their cars for some time before halting the practice due to the rising pollution in the production of the virtual currency. Moreover, it got rid of 75% of its Bitcoin in 2022, but it remains the fourth company on the list of corporate holders with 11,509 BTC.

While the recent movement of Bitcoin triggered concern, Arkham Intelligence emphasized that Tesla is merely securing its holdings in new wallets, signaling no intention to sell. Consequently, this clarification has eased worries in the cryptocurrency market. Tesla CEO Elon Musk has not publicly commented on Bitcoin since 2022 but has previously mentioned that Tesla may accept Bitcoin again if mining becomes more sustainable.

Tesla’s Ongoing Relationship with Crypto

Despite the market turbulence, Tesla’s presence in the crypto space is still significant. Musk recently commented on the decentralization properties of cryptocurrency, labeling it as “interesting.” His remarks reflect Tesla’s continued interest in the digital currency space, even though the company’s payment option remains suspended for now.