Tesla's $1 Billion Bitcoin Milestone Nears with Short Squeeze Fueling Rally

Tesla's Bitcoin stash has neared $1 billion as a sharp rebound in Bitcoin fueled by a powerful short squeeze, according to data from Arkham. The company holds 11,509 BTC worth approximately $994.9 million, putting it just $5.1 million shy of the $1 billion milestone.

The value of Tesla's Bitcoin stash has climbed roughly $122.6 million this week as Bitcoin gained about 14%. This increase represents a rise in the market value of Tesla's existing Bitcoin holdings, not a new crypto purchase or realized profit.

CoinMarketCap research points to an 'unwinding of bearish positioning' behind the recent move, with more than $500 million in bearish positions liquidated as Bitcoin pushed higher. This has raised questions about whether the rally can sustain itself on genuine demand rather than forced short covering.