Tesla’s Bitcoin Stash Untouched Since Q2/2022

Tesla Inc., the world’s EV manufacturing leader, reported today that none of their $312 million worth of Bitcoin was sold in Quarter 3, 2023. With this new update, Tesla’s Bitcoin stash has remained unchanged for five consecutive quarters.

Tesla’s latest sale occurred in Q2/2022 when Elon Musk confirmed that his corporation sold over 30,000 Bitcoin at approximately $936 million. Other sales from SpaceX were revealed by the Wall Street Journal earlier in August.

The media firm sourced SpaceX’s financial report, saying that $373 million worth of Bitcoin were sold in 2021 and 2022. However, the estimated amount of Bitcoin that SpaceX owns remained a question.

Tesla Still Has BTC

In addition to the Bitcoin holding report, Tesla revealed that the company’s earnings were $23.35 billion in Q3/2023, up 9% compared to the prior-year period. Tesla’s earnings growth is particularly impressive given the challenging economic environment, which is still recovering from the pandemic, and supply chain disruptions.

Tesla’s report also emphasized the company’s growing investment in AI development. Tesla is also switching the training of its humanoid robot Optimus to AI rather than coded software. The firm already uses AI in a variety of ways, including in its self-driving cars, energy storage products, and manufacturing processes.

Despite the market downturn, many entities continue to hold or even increase their Bitcoin holdings. When an asset goes on sale, it can be a great time to stock up!

MicroStrategy, for example, reportedly acquired 5,445 more BTC, equivalent to over $150 million, between August and September 2023. As of October 2023, the top Bitcoin institutional holders are Galaxy Digital Holdings, MicroStrategy, Marathon Digital Holdings, Coinbase, and Tesla.

On the other hand, some companies have another plan. Image editing software developer Meitu announced Monday that it plans to sell all its crypto holdings, including 31.000 ETH and 940,89 BTC at an appropriate time. The company also wants to shift its focus to AI as it believes in the beneficial, sustainable future of this domain.

Elon Musk’s Perspective on Interest Rate

Elon Musk expressed concerns about the global economic outlook and its impacts on his businesses. The CEO of X said that Tesla is focusing on reducing production costs and lowering their EVs’ price.

“For the vast majority of people buying a car, it’s about the monthly payment, and as interest rates rise…If interest rates remain higher or get even higher, it’s that much harder for people to buy the car, because they can’t afford it,” added Tesla’s CEO.

Since March 2022, the U.S. Federal Reserve (Fed) has raised interest rates over 10 times in an effort to combat inflation. The central bank has not announced any future rate hikes, but it has said that it will continue to raise rates until inflation is brought to the 2% target.

The market is setting eyes on the coming FOMC meetings, scheduled for November 31-1 and December 12-13. Most crypto members bet on the likelihood of at least another rate hike, especially after the Fed decided to skip it in September.

Interest rates are a particular concern during times of high inflation. Raising rates can slow economic growth and lead to higher unemployment.

While macro data provides insights into the state of the economy and helps investors indicate future direction, recent on-chain data shows that Bitcoin hasn’t shown a significant reaction to macroeconomic and monetary policy news.

However, the ongoing economic downturn and the formulation of regulations could affect the market’s sentiment. Over time, there will be more inflation, and this should drive crypto prices higher.

Crypto enthusiasts are more interested in the SEC’s decision on the Bitcoin spot exchange-traded funds (ETFs) and Bitcoin Halving in 2024. Bitcoin Halvings have historically been bullish for the price of Bitcoin, as they reduce the supply of new Bitcoin entering the market.