The actions have raised the possibility that Elon Musk is getting ready to liquidate Tesla’s Bitcoin holdings.
Tesla, owned by Elon Musk, moved almost all of its $760 million worth of Bitcoin to unidentified wallets, raising speculation that the carmaker may be liquidating 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.
Since selling the majority of its Bitcoin holdings in 2022, the automaker has not used its wallets until now.
When most companies were avoiding the volatile cryptocurrency, Tesla made headlines in February 2021 when it made a bold $1.5 billion investment in Bitcoin.
Automaker Sold Majority Bitcoin at a Loss in 2022
Between January and the beginning of February 2021, when the price of Bitcoin ranged from $29,000 to $40,000, Tesla purchased its shares. This suggests that the business probably paid about $35,000 on average for its Bitcoin.
According to its explanation, the move was made to maximize returns on its cash reserves and increase flexibility in diversification.
Subject to legal considerations, Tesla also disclosed plans to begin accepting Bitcoin as payment for its products on a trial basis.
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.
Elon Musk, the CEO of Tesla, may be getting ready to sell the company’s Bitcoin holdings, according to rumors sparked by these actions. Following an attempted assassination of the former president, Musk has openly stated his support for Republican presidential candidate Donald Trump.
In the meantime, Trump’s recent, noteworthy change in position regarding cryptocurrencies has contributed significantly to his increased popularity in the crypto community.