For the first time in more than two years, Tesla has moved all of its Bitcoin holdings, valued at about $760 million, out of public wallets. According to Arkham Intelligence, Tesla made multiple transactions to move its Bitcoin holdings out of existing wallets. The move attracted widespread attention in the Bitcoin market, and soon after, the value of Bitcoin reached $670,000.

Tesla transferred $75.18 million, $76.08 million, and $77.16 million in the first three major transactions. The transactions reportedly occurred in quick succession. While the company transferred $76.08 million and $77.16 million to the same anonymous wallet, Tesla transferred $75.18 million to another unidentified wallet.

So far, Tesla's Bitcoin has not entered an exchange wallet or been converted into a stablecoin. This raises the question of why the company founded by Elon Musk decided to make this move two years later. As of the time of the move, the electric car maker was the fourth largest Bitcoin holder, holding 10,000 coins in 2021. Tesla or Musk has not yet publicly commented on the move, but the potential reasons behind the move vary in severity.

Additionally, users on social media speculated that the consolidation of UTXOs (unspent transaction outputs) played a role in the Tesla Bitcoin transaction. UTXOs can be thought of as separate unspent amounts of any token, waiting to be used in future transactions. Each UTXO used in a transaction increases the transaction size, resulting in higher fees. Consolidation results in fewer inputs for future transactions