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Electric vehicle maker Tesla transferred over 11,500 Bitcoin, worth approximately $765 million, to undisclosed wallets, according to data from Arkham Intelligence. This move has triggered speculation about the automaker’s plans for its cryptocurrency holdings.
Tesla’s Bitcoin wallets now hold a minimal amount, approximately $6.74 in BTC, marking the first significant transfer since the company sold off most of its holdings in 2022.
The large-scale Bitcoin movement has raised questions about whether Tesla is preparing to sell its remaining cryptocurrency or if it represents a new strategic shift. Tesla’s CEO, Elon Musk, has not commented, leaving the market speculating.
Tesla made headlines in February 2021 with its groundbreaking $1.5 billion Bitcoin purchase, signaling a solid vote of confidence in the cryptocurrency. The move was viewed as risky, as the firm aimed to invest its cash and cash equivalents more broadly and thereby possibly gain the most significant returns. The automaker also considered allowing individuals to purchase cars using cryptocurrencies such as Bitcoin, but the law stopped the idea.
Tesla initially supported virtual currencies by investing 10K cars worth of Bitcoin; however, due to an effective loss in liquidity in 2022, they were forced to sell 75% of these virtual currencies. On the other hand, the sale led to a loss since it was established that the company had acquired its Bitcoin at a higher price.
Information also shows that Tesla bought the cryptocurrency at $35,000 per coin, while the cost of Bitcoin ranged between $29,000 and $40,000 at the time of its purchase. Based on Tesla’s balance sheet as of March 2023, the company still had about 11,509 Bitcoins valued at roughly $770 million.
Tesla, as one of the leading corporate investors in BTC, has, therefore, drawn attention to its every move in the crypto space. According to its latest valuation, Tesla invests in Bitcoin as the fourth-largest digital currency holding among American companies after MicroStrategy, MARA Holdings, and Riot Platforms.
The movement of Bitcoins to unknown wallets has sparked debates as to whether Musk is selling off more of Tesla’s reserves or seeking other financial approaches.
