Tesla Maintains Bitcoin Holdings in Q3 Report, Alleviating Market Concerns.
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Tesla's Q3 earnings report has confirmed that the company continues to hold 11,509 Bitcoin, valued at approximately $765 million, which solidifies its status as the fourth-largest Bitcoin holder among publicly traded U.S. firms. It ranks just behind MicroStrategy, Marathon Digital Holdings, and Riot Platforms.
Concerns had arisen following recent movements in Tesla’s Bitcoin wallets, sparking speculation about potential asset sales or transfers. However, the Q3 report clarifies that the company has not sold any of its holdings. According to Arkham Intelligence, these wallet changes were made for security purposes, with Tesla's Bitcoin now distributed across seven wallets, each containing between 1,100 and 2,200 BTC.
Financially, Tesla exceeded expectations with a gross margin of 19.8%, an improvement from the previous quarter’s 18.0%. Despite an 8% year-over-year revenue increase, the $25.1 billion reported fell slightly short of the anticipated $25.4 billion. CEO Elon Musk addressed the company’s recent struggles, attributing them to heightened competition from more affordable electric vehicles as a temporary challenge.
For the Bitcoin community, Tesla’s commitment to retaining its Bitcoin reserves signals a positive outlook. The lack of changes in its holdings during the quarter suggests the company is optimistic about the future of cryptocurrency. Additionally, SpaceX, another of Musk's ventures, holds 8,285 Bitcoin, valued at $560 million, making it the seventh-largest private Bitcoin holder.
Tesla's connection to Bitcoin began in 2021 when the company briefly accepted it as payment for its vehicles. This policy was later reversed due to environmental concerns regarding Bitcoin mining. Musk has indicated that Tesla might reconsider accepting Bitcoin in the future if more sustainable mining methods are developed.
As Bitcoin's price hovers around $66,500, it remains to be seen how Tesla's quarterly report will influence the cryptocurrency market in the near future.