Tesla’s Bitcoin (BTC) treasury has climbed to an estimated $1.2 billion, holding approximately 11,900 BTC, according to recent analysis by Arkham Intelligence based on blockchain data. This significant increase reflects the cryptocurrency’s recent price surge, with Bitcoin reaching an all-time high of $111,000.
The electric vehicle (EV) giant, owned by Elon Musk, first revealed its foray into Bitcoin in the first quarter of 2021, reporting a $1.5 billion purchase of roughly 43,200 BTC in a February 8, 2021, SEC filing.
Initially, Tesla explored integrating Bitcoin into its operations, even offering the option to pay for EV cars with BTC. However, this payment method was swiftly abandoned in May 2021 due to environmental concerns surrounding Bitcoin’s energy-intensive proof-of-work mining method, which often relies on fossil fuels. This “flip-flop” policy, as some analysts describe it, may have led Tesla to miss out on substantial gains.
Tesla utilizes Coinbase Prime Custody to manage its Bitcoin holdings. While the company has shown consistent interest in cryptocurrencies, the environmental impact of Bitcoin’s algorithm remains a point of contention, particularly for a company dedicated to promoting sustainable practices through EVs. Speculation persists that Musk may yet integrate other tokens like Dogecoin into his various businesses.
Tesla has previously sold off significant portions of its Bitcoin. In Q1 2021, the company sold 10% of its holdings, pocketing a $272 million profit. A more substantial sell-off occurred in Q2 2022, when 75% of its remaining Bitcoin was liquidated, leaving only 9,720 BTC in its treasury. Elon Musk cited the company’s need for capital as the reason for these sales. Had Tesla held onto its initial 43,000 BTC, its current holdings could be nearing $5 billion.
Broader Trends in Corporate and Government Bitcoin Adoption
Tesla isn’t alone in accumulating a Bitcoin treasury. MicroStrategy, a prominent corporate holder, boasts an impressive 576,230 BTC, valued at approximately $63 billion at current prices, following its latest purchase of 7,390 BTC on May 19. Tokyo-listed Metaplanet is also actively building its Bitcoin reserves, recently adding 1,004 BTC towards a target of 10,000 BTC.
Even governments are entering the fray. President Donald Trump has approved a federal Bitcoin treasury utilizing seized assets, while states like New Hampshire and Texas have also greenlighted local treasuries, boosting cryptocurrency’s mainstream appeal.
