No rest for Bitcoin! While we are barely waking up on this side of the planet and BTC is showing more than 67,000 dollars on the counter, a dramatic turn of events on the market! Elon Musk‘s company Tesla transferred more than 11,500 bitcoins, or about $770 million, to new addresses. A massive movement, detected by the analysis company Arkham Research. Is this a sign that the electric vehicle giant is preparing a new sale of its cryptocurrency treasure? We take stock.
Tesla, a giant fueled by Bitcoin
Remember. In February 2021, the billionaire Elon Musk had caused euphoria on the cryptocurrency market by announcing that his company Tesla bought $1.5 billion worth of Bitcoin. The price of BTC was then propelled to new “highs”, more than 37 000 dollars. If Tesla has since resold 75% of its bitcoins, we will come back to the electric car manufacturer HODL (keep) on the other hand what remains for several years NOW.
Today, Tesla only owns 11 509 bitcoinsaccording to the latest estimations from Arkham Research. But these bitcoins have just been mysteriously transferred to new addresses.
Tesla sends its bitcoins to other addresses – Source
Why this transfer of BTC?
However, some experts believe the company could be preparing to liquidate the rest of its bitcoin holdings. Previous Tesla sales often took place after such transfers to new addresses. In 2021, the company had sold $272 million in bitcoins, generating a net profit of 128 millions after a rally in the price of Bitcoin to almost 62 000 dollars. Then, in 2022, it sold again $936 million of bitcoins, as the market fell.
Note that this movement takes place at an important time for Elon Musk’s company Tesla must publish its financial results for the third quarter on October 23, 2024. Some analysts speculate that selling these bitcoins could be a way to improve its financial results, especially if revenue from the sale of electric vehicles declines.
Tesla remains one of the largest holders of Bitcoin among publicly traded companies, behind giants like MicroStrategy and MARA Holdings. But Tesla’s history with Bitcoin has not been without controversy. Elon Musk initially promised that Tesla would accept Bitcoin for vehicle purchases, before backtracking, citing environmental concerns related to the energy consumption of Bitcoin mining. For now, Musk is remaining tight-lipped about Tesla’s intentions, but with $770 million at stake, all options are on the table. To be continued, on the Journal du Coin.
