Tesla's move has sparked rumors that Elon Musk may be willing to sell all of the company's Bitcoin.
Billionaire Elon Musk’s Tesla has transferred most of its $760 million worth of Bitcoin (BTC) to anonymous wallet addresses, sparking rumors that the company is about to sell all of its BTC holdings. Data from Arkham Intelligence revealed that a company-owned wallet transferred more than 11,500 Bitcoin to an undisclosed wallet address on Tuesday, leaving Tesla with just $6.74 worth of Bitcoin.
This is the automaker’s first move into managing its own Bitcoin portfolios since selling most of its holdings in 2022, after making headlines in February 2021 by investing $1.5 billion in Bitcoin, a bold move at a time when most companies were shunning the volatile digital currency.
Automaker sold most of its Bitcoin holdings at a loss in 2022
Tesla purchased and accumulated most of its Bitcoin between January and early February 2021, when it was trading between $29,000 and $40,000, meaning the company bought the coins at an average price of around $35,000 per coin; it explained its move as a way to diversify and maximize the returns on its cash reserves.
Although Tesla initially announced plans to accept BTC as payment for its products on a trial basis, with legal considerations in mind, it sold 75% of its Bitcoin holdings at a loss in early 2022. By March, when Arkham began tracking the performance of its Bitcoin wallets, the company still held about 11,509 Bitcoin, worth an estimated $770 million.
#Tesla among the largest companies owning Bitcoin
Data from Bitcoin Treasuries shows that Tesla is the fourth-largest holder of bitcoin among publicly traded US companies for the year, trailing only MicroStrategy, MARA Holdings, and Riot Platforms, which hold larger bitcoin reserves.
Following the company’s latest move, there have been rumors that its CEO, Elon Musk, may be preparing to sell Tesla’s Bitcoin holdings, given that he has openly declared his support for Republican presidential candidate Donald Trump after the latter’s assassination attempt, and whose popularity in the crypto community has increased thanks to his noticeable shift in his stance on digital currencies.
