Tesla Holds Its Bitcoin – But Bitcoin Doesn't Care
Tesla's latest quarterly report confirms the company maintains its 11,509 Bitcoin position, worth $765 million, making it the fourth-largest Bitcoin holder among U.S. public companies. For context, this represents just 0.06% of Bitcoin's total market capitalization.
The Q3 earnings disclosure ends speculation sparked by recent wallet movements. Arkham Intelligence data shows Tesla redistributed its Bitcoin across seven wallets, each containing 1,100 to 2,200 BTC, as part of security protocols.
Tesla's financial performance showed mixed results. While gross margins improved to 19.8% from 18.0% in Q2, revenue fell short at $25.1 billion versus expected $25.4 billion, despite 8% year-over-year growth. CEO Elon Musk acknowledged pressure from lower-priced electric vehicle competitors.
The Bitcoin markets often overreact to Tesla's cryptocurrency moves. Yet daily Bitcoin trading volume exceeds $20 billion, dwarfing Tesla's total holdings. Tesla ranks behind MicroStrategy, Marathon Digital Holdings and Riot Platforms in institutional Bitcoin holdings.
SpaceX, also led by Musk, holds 8,285 Bitcoin valued at $560 million, placing it seventh among private Bitcoin holders.
Tesla's Bitcoin journey started in 2021 when it briefly accepted the cryptocurrency for vehicle purchases. The company suspended this practice over mining's environmental impact but left open the possibility of resumption pending greener mining methods.
The static Bitcoin position suggests Tesla sees value in cryptocurrency exposure, though its primary business remains electric vehicle manufacturing and energy solutions. Bitcoin's price movements correlate more closely with macroeconomic factors, regulatory developments and market structure than with single corporate holdings.
