Tesla Shifts $765M Bitcoin to Unidentified Wallets, Sparking Debate on Elon Musk’s Strategy

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

October 16, 2024 00:07 EDT

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Elon Musk’s Tesla has transferred nearly all of its Bitcoin worth $760m to unknown wallets, sparking rumors that the automaker might be selling off its holdings.

On Tuesday, wallets linked to Tesla moved over 11,500 Bitcoin to wallets with undisclosed ownership, Arkham Intelligence data showed. Consequently, Tesla’s wallets now hold only about $6.74 in BTC.

This move is the first time the automaker has operated its Bitcoin wallets since selling most of its holdings in 2022.

Back in Feb. 2021, Tesla made headlines by investing $1.5b in Bitcoin, a bold step at a time when most companies were steering clear of the volatile cryptocurrency.

Automaker Sold Majority Bitcoin at a Loss in 2022

Tesla acquired its Bitcoin between Jan. and early Feb. 2021, when the cryptocurrency traded between $29,000 and $40,000. Based on this, the company likely bought its Bitcoin at an average price near $35,000.

It explained the move as a way to increase flexibility in diversifying and maximizing returns on its cash reserves.

Tesla also revealed plans to accept Bitcoin as payment for its products, starting on a trial basis, subject to legal considerations.

However, the firm sold off 75% of its Bitcoin holdings at a loss in early 2022. By March, when Arkham began tracking Tesla’s Bitcoin wallets, the company still held around 11,509 Bitcoin, valued at about $770m.

Tesla Among Top Four Bitcoin Holders

Bitcoin Treasuries data shows Tesla as the fourth-largest Bitcoin holder among publicly traded U.S. companies. Only MicroStrategy, MARA Holdings, and Riot Platforms hold more significant Bitcoin reserves.

These actions have sparked speculation that Tesla CEO Elon Musk might be preparing to sell the company’s Bitcoin holdings. Musk has publicly declared support for Republican presidential nominee Donald Trump after an assassination attempt on the former president.

Meanwhile, Trump’s popularity in the crypto community has risen, largely driven by his recent, notable shift in stance toward cryptocurrencies.