Musk's odd crypto connection has evolved. Arkham Intelligence reports that the business transferred $765 million in Bitcoin to unknown wallets. The EV producer, the fourth-largest Bitcoin holding among U.S. public firms, according BitcoinTreasuries, may sell.
A request for response or transfer confirmation from Tesla was delayed. MicroStrategy, MARA Holdings, and Riot Platforms are the only U.S. public corporations with more Bitcoin.
Tesla's Bitcoin is less than 1% of its $700 billion market valuation. For the remaining three firms, bitcoin contributes to 25% or more of their values.
Tesla bought Bitcoin for $1.5 billion in 2021. Musk, a big Dogecoin lover, believed the purchase will help the firm optimize cash returns and accept crypto payments for its cars, another risky move. The news sent Bitcoin up over $10,000.
Musk reversed course later that year, expressing worries about Bitcoin mining's heavy usage of fossil fuels like coal. Crypto lovers were furious as Bitcoin plummeted over 10%. Musk claimed Tesla would accept Bitcoin payments when mining became more environmentally friendly but not sell any cryptocurrencies.
As of summer 2022, Tesla sold most of its Bitcoin for an average price of $20,000, $18,000 less than it purchased. Company sales bottomed out.
Tesla's remaining Bitcoin, under 10,000 BTC, has risen more than 350%. Bitcoin reached $73,750, making its 43,200 BTC investment worth over $3 billion.
The future of Tesla's remaining assets remains unknown. Note that crypto accounting regulations are soon to change. Starting Dec. 15, crypto assets must be valued at fair value on the balance sheet and reported in net income at the end of each reporting period.
Bitcoin required a “cost-less-impairment” model before the FASB announced its new recommendations last year. That meant market value movements could only lower crypto prices. Thus, profits would only appear on the balance sheet once digital assets were sold.
