Elon Musk’s Tesla moved nearly all its Bitcoin, worth $760m, to unidentified wallets. The move sparked speculation that the automaker was planning to sell its Bitcoin holdings.
Arkham Intelligence revealed that wallets connected to Tesla sent over 11,500 Bitcoins on Tuesday to wallets whose owners were not disclosed. Tesla’s wallets only hold $6.74 BTC.
This is the first time that the automaker has used its Bitcoin wallets after selling off most of its holdings back in 2022.
Tesla’s bold investment of $1.5 billion in Bitcoin in Feb. 2021 made headlines at a time when most companies were staying away from the volatile cryptocurrency.
Automaker Sold Bitcoin Majority at a Loss by 2022
Tesla purchased its Bitcoin between Jan. 2021 and Feb. 2021 at a price between $29,000 and $40,000. This means that the company bought its Bitcoins at an average of about $35,000.
It explained that the move was a way of increasing flexibility and maximising returns on its liquid cash reserves.
Tesla announced that it will accept Bitcoins as payment for their products. The plan is to start with a limited trial and then expand based on legal considerations.
The firm sold a 75% Loss of its Bitcoin holdings in early 2022. Arkham had begun tracking Tesla’s Bitcoin wallets by March. At that time, the company still owned around 11,509 bitcoins worth $770m.
Tesla is among the top four Bitcoin owners
Bitcoin Treasuries data reveals Tesla as the 4th largest Bitcoin holder in publicly traded U.S. firms. Only MicroStrategy Holdings (MARA) and Riot Platforms are the companies with more Bitcoin.
The actions of Elon Musk have led to speculation that he is planning to sell Tesla’s Bitcoin holdings. Musk has publicly stated his support for Republican presidential candidate Donald Trump following the assassination plot against the former President.
Trump’s popularity among the crypto community is on the rise due to his recent notable shift in attitude toward cryptocurrencies.
