Headline: Concerns Over Bitcoin Holdings Alleviated by Tesla's Earnings Report
Tesla's third-quarter earnings report revealed that the company's Bitcoin holdings remained unchanged throughout the year. The report confirmed that Tesla holds approximately 11,509 Bitcoin valued at around $765 million, making it the fourth-largest Bitcoin holder among publicly traded companies in the U.S., following MicroStrategy, Marathon Digital Holdings, and Riot Platforms. Previously, movements in Tesla's wallet sparked discussions about whether it planned to sell or transfer its holdings. However, statements from Arkham Intelligence indicated these movements were likely made for security purposes. Arkham Intelligence noted that Tesla's Bitcoin is divided into seven different wallets under its own custody.
Earnings Surpass Expectations
Tesla's third-quarter earnings report surprised many analysts, surpassing expectations in several areas. The gross profit margin was reported at 19.8%, up from 18% in the second quarter. However, Tesla's third-quarter revenue was $25.18 billion, slightly below the expected $25.4 billion. Nevertheless, this revenue represents an 8% increase compared to the previous year, indicating global sales growth. Elon Musk had previously addressed profitability issues and attributed a roughly 50% drop in profit margins at the end of the second quarter to competition from cheaper electric vehicles. He assured investors that this decline was temporary.
Impact on the Bitcoin Market
Tesla maintaining its Bitcoin holdings provided some relief to the Bitcoin community. The company's decision to hold onto its Bitcoin throughout the third quarter suggests a positive evaluation of the market. Following Tesla's third-quarter report, Bitcoin's price remained steady around $66,500. Elon Musk's other venture, SpaceX, is also known to hold 8,285 Bitcoin valued at $560 million, making it the seventh-largest Bitcoin holder among private companies. Tesla's initial engagement with Bitcoin began in 2021 with a $1.5 billion BTC purchase. However, Tesla later retracted its crypto payment acceptance policy due to environmental concerns over Bitcoin mining. Elon Musk has indicated they might reconsider crypto payments if mining practices become more sustainable.