Tesla has reaffirmed that its Bitcoin reserves are secure, dispelling rumors that emerged following recent wallet transfers. As of October 23, 2024, the electric vehicle manufacturer maintains its substantial holding of 11,509 BTC, equivalent to around $765.22 million, despite moving these assets to new wallets. Meanwhile, the TSLA stock soared nearly 12% in the after hours.
Tesla Continues to Hold Massive Bitcoin Reserve
In its Q3 earnings report released on Wednesday, Tesla clarified that it has not liquidated any of its Bitcoin assets. The clarification came after the company relocated its entire BTC reserve, valued at approximately $776 million at the time, into new wallets last week. This move had initially sparked concerns within the crypto community about a potential sale.
Arkham Intelligence, a blockchain analytics platform, conducted an analysis and determined that the wallet transfers were merely “wallet rotations.” This term refers to the process of transferring assets into newer wallets for enhanced security. The report emphasized that Tesla continues to retain full control over its Bitcoin, which is now distributed across seven separate wallets, each holding between 1,100 and 2,200 BTC.
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Tesla’s recent wallet movements occurred against the backdrop of a broader focus from analysts and investors on the company’s profit margins and any potential shifts in its BTC strategy. Despite these speculations, the company’s Bitcoin holdings remain unchanged.
A Look At EV Giant’s Q3 Earnings Report
In addition to addressing the Bitcoin-related concerns, Tesla’s third-quarter earnings report exceeded expectations, showcasing robust financial performance. The company reported a gross margin of 19.8%, an increase from the second quarter’s 18.0%. This positive development reflects Tesla’s ongoing strength in the electric vehicle market while maintaining its Bitcoin investment strategy.
Investors had closely monitored the company’s financial results, particularly in light of the significant BTC wallet activity, which led many to question whether Tesla would alter its approach to flagship crypto. However, the company confirmed that it has not changed its stance regarding its Bitcoin reserves. Moreover, after the earnings report, the TSLA stock climbed 11.53% to $24.63 in the after hours today.
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