This is a large movement of bitcoins that has just been discovered by the analytical company Arkham Research. Electric vehicle giant Tesla has actually moved more than 11,500 BTC, or about $770 million, to new addresses. This sudden move has crypto market watchers wondering: are Elon Musk and Tesla preparing a massive sale of their bitcoin holdings?
Tesla, the Bitcoin juggernaut that has made a name for itself
Tesla’s love affair with Bitcoin began in February 2021, whenElon Musk has created euphoria by announcing a massive purchase of $1.5 billion of BTC with his company. This news boosted the price of Bitcoin to more than 37 000 dollars. Since then, Tesla has sold 75% of his bitcoins, but still maintains a war chest of 11 509 BTC according to estimates.
Highlights of the Tesla-Bitcoin relationship:
- February 2021: Buy $1.5 billion in BTC
- 2021: Sold $272 million worth of BTC, net profit of $128 million
- 2022: New sale of $936 million in BTC
- Tesla remains one of the largest holders of BTC among listed companies
$770 million worth of BTC is moving, speculation is rife
This transfer of 11,509 bitcoins to new addresses does not fail to arouse speculation. Indeed, in the past, such financing moves often preceded the sale of bitcoins by Tesla. So some experts see this as a sign of a potential liquidation of the rest of the company’s BTC holdings.
The tim also raises questions, as this move comes a few days before the release of Tesla’s 3rd quarter 2024 financial results, scheduled for October 23rd. Could he sell those bitcoins as a way to boost the company’s bottom line in the event of a drop in car revenue? This is a hypothesis put forward by some analysts.
A complicated relationship between Elon Musk and Bitcoin
If Tesla’s initial purchase of bitcoins was seen as a great sign of cryptocurrency adoption, the result was more chaotic. Elon Musk first promised that Tesla would accept payments in BTC, before retracting his decision, citing the environmental impact of mining.
This opposition provoked strong criticism in the crypto community. Since then, the whimsical billionaire has been more careful about his intentions regarding Bitcoin, leaving no doubt. With this new big move, all conditions are on the table.
The main Musk / Bitcoin developments in brief:
- Musk announces that Tesla will accept BTC payments
- About a few months later, BTC banned for environmental reasons
- Strong criticism from the crypto community
- Musk has since been more specific on his view of Bitcoin
All eyes on October 23 and Tesla results
Tesla is undoubtedly one of the heavyweights in Bitcoin, along with companies like MicroStrategy or MARA Holdings. With $770 million worth of BTC still in its coffers, a change of strategy from the manufacturer could have a major impact on the market.
So all eyes are turned towards the October 23rd and the release of Tesla’s financial results. These numbers, together with a possible communication from Elon Musk, could raise the profile of the true intentions behind this secret movement of bitcoins. The market is holding its breath.
Cover photo: © ink drop – stoc.adobe.com
My name is Michael. I am a journalist for this magazine where I research and break down current events to provide you with articles that allow you to have a more nuanced and balanced understanding of global affairs. Passionate about creating bridges between stories and people, I joined this site to practice interactive journalism, where each article is an open conversation with the reader.
