Tesla moved 11,500 BTC valued at $765 million in October 2024.
SpaceX, another Musk-led company, holds over 8,000 BTC.
Elon Musk’s Tesla has made its first significant Bitcoin move in over two years, transferring around 11,500 BTC valued at approximately $765 million. The transaction, revealed by Arkham Intelligence, occurred on October 16, 2024, in multiple batches.
It has stirred considerable interest in the cryptocurrency world. These Bitcoin transfers were spread across several new, unidentified wallets. Importantly, none of the wallets are associated with crypto exchanges, leading to speculation that Tesla may not be planning an immediate sale of its Bitcoin holdings.
Tesla have just moved $225M of Bitcoin to new addresses. pic.twitter.com/Faqp88zs9g
— Arkham (@ArkhamIntel) October 15, 2024
The 26 separate transactions included three large transfers totaling over $228 million. The rest of the Bitcoin was dispersed in smaller amounts across multiple wallets. Tesla’s wallet had been inactive since 2022, making this sudden activity unexpected. While no official reason has been provided, some analysts believe the move was a security measure.
Perhaps transferring funds to cold wallets to mitigate the risk of hacking. Others speculate the company might be preparing for a sale, which could significantly impact Bitcoin prices if executed on open markets.
Tesla’s Bitcoin Holdings and Market Impact
Tesla first entered the Bitcoin market in early 2021 with a $1.5 billion investment, sparking widespread attention. It sold 10% of this investment in the first quarter of that year, realizing a profit of $128 million. However, in July 2022, the company sold 75% of its remaining Bitcoin holdings during a market downturn, generating $936 million.
Following these sales, Tesla retained 11,500 BTC, which has increased in value as Bitcoin prices have risen. As of October 15, 2024, Tesla held an estimated 9,720 BTC, worth about $650 million, down from its peak holding of 43,000 BTC. Arkham Intelligence believes Tesla may hold as much as 11,509 BTC across 68 wallets, valued at around $770 million at current prices.
Despite this major move, the market has shown little reaction so far. Bitcoin was trading at approximately $66,880 at the time of the transaction. Some market analysts suspect that if Tesla were to sell its holdings, it might do so through over-the-counter (OTC) trades. This method would allow Tesla to avoid causing panic or triggering a sharp price drop by offloading its Bitcoin in public markets.
Tesla remains one of the largest corporate Bitcoin holders, following MicroStrategy and MARA. The electric vehicle giant also briefly accepted Bitcoin payments for its cars in 2021 before pausing the practice due to environmental concerns. Additionally, Musk’s space venture, SpaceX, is reported to hold 8,285 BTC, further highlighting his company’s involvement in the crypto space.Highlighted Crypto News Today021 Doubles Down on Avalanche with Strategic Acquisition of Looty
