Elon Musk’s Tesla has moved some of its Bitcoin into new wallets, sparking speculation that the EV maker is poised to sell off its cryptocurrency reserves. Blockchain data platform Arkham Intelligence detected the movement after Tesla’s Bitcoin wallets saw some activity for the first time in over two years.
Tesla has transferred its entire stash of 11,509 BTC, valued at $765 million at the time of the transfer, to several new wallets. The surprise transactions, including test transfers, totaled 26 and have stirred a debate that the automaker is gearing up to offload its remaining Bitcoin stash.
Will Tesla Sell Off Its Bitcoins?
Tesla’s latest Bitcoin shuffle has drawn widespread attention. However, amidst the speculations, neither Musk nor the company has commented on the move. The activity represents Tesla’s first on-chain Bitcoin activity since early 2022.
The purchase of $1.5 billion worth of Bitcoin by Tesla in 2021 made headlines, saying it was part of its long-term investment plan. However, the company sold 85% of its Bitcoin stash in 2022. Most of the sales occurred when the crypto traded at about $23,000 per coin.
If the transfer results in sales, the company can profit as high as $515 million.
Perspective Based on Past Tesla Bitcoin Sales
Tesla certainly hasn’t shied away from selling some of its Bitcoin. During the first quarter of 2022, the company sold 10% of its Bitcoin. The firm later sold 75% of its Bitcoin in July 2022.
The company recorded losses from these sales as Bitcoin’s price was much lower at the time. Though Tesla had sell-offs in the past, the latest transfer indicates a probable change in its crypto strategy.
It’s unclear whether the EV automaker will sell its BTC assets or just transfer them for another purpose. Nonetheless, this surprise move has put the auto manufacturer in hot seats in the crypto space.
Elon Musk Faces Crypto Scrutiny After The BTC Transfers
Tesla’s transactions have caught many off guard. This is because Musk is considered an Influential proponent of cryptocurrencies. Elon Musk openly touts himself as an admirer of cryptocurrencies and declares his love for $DOGE, making him the meme cryptocurrency’s influential proponent.
In July 2024, Musk said Bitcoin and some other cryptocurrencies have merits, but he added he still favors Dogecoin. His praise of the meme coin was so great that investors sued him for financial losses.
Despite Musk seeming crypto-friendly, Tesla’s Bitcoin moves have left many guessing, particularly because his company has adopted conflicting attitudes toward digital asset storage.
Crypto Quant CEO Says Tesla’s BTC Sale Won’t Affect The Market
The CEO of Crypto Quant, Ki Young Ju, has rivaled many expectations regarding the potential sale of Tesla’s BTC. In his post, Young said that if Tesla decided to sell, the market pressure would be easily absorbed.
He pointed to the June sale of 50,000 BTC seized from Movie2k.to by the German government, which fetched $816 million. According to Ju, that sale was digested with minimal disruption to the market and thus demonstrated that it could do the same with Tesla’s smaller holdings.
Tesla’s Bitcoin is worth $515 million, a far lower value than the German government is selling. Whatever the case, Ju says that the crypto market will not bat an eyelid at a transaction of this nature.
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