Tesla Moves $769 Million in Bitcoin

Tesla’s unexpected Bitcoin transfer sparks questions about its future cryptocurrency plans as the market awaits further clarity.

Tesla has transferred $769 million worth of Bitcoin to several unknown wallets, marking the first movement of its cryptocurrency holdings in over two years. The transaction, which involved 11,500 Bitcoin distributed across seven unidentified wallets, occurred on October 15, 2024, and has led to widespread speculation about the company’s intentions.

According to Arkham Intelligence, the transfer took place at approximately 20:41 UTC, beginning with smaller test transactions before moving the full amount. The timing of this move is significant, as the Bitcoin funds had remained inactive since June 17, 2022, when Tesla last engaged in a major sale.

The electric vehicle giant first made headlines in February 2021 when it purchased $1.5 billion worth of Bitcoin. Shortly after, Tesla announced it would accept Bitcoin as payment for its vehicles. However, this policy was reversed in May 2021 due to concerns about Bitcoin mining's environmental impact. Tesla’s last large sale took place in June 2022, when the company sold 29,160 Bitcoin at an average price of $20,000 per coin, but it has retained the remainder of its Bitcoin holdings since.

This latest movement has revived interest in Tesla’s cryptocurrency strategy. Some speculate that Tesla might be preparing to take direct custody of its Bitcoin holdings, suggesting a potential reactivation of Bitcoin payments for Tesla vehicles. The use of a legacy address format in the transfer, typically not associated with exchanges, further supports the theory that this move may not indicate an imminent sale.

Elon Musk, Tesla’s CEO, has been a vocal advocate of cryptocurrency. His other company, SpaceX, is also known to hold a significant amount of Bitcoin—an estimated 8,285 Bitcoin valued at around $556 million. However, Tesla’s Bitcoin activity has remained relatively quiet since its last sale.

As of now, Tesla has made no official statement regarding the recent transfer or its future plans for its Bitcoin reserves. The company’s upcoming Q3 earnings report on October 23 could shed light on the situation.

Despite the scale of the transaction, the market’s reaction has been relatively muted. Bitcoin was trading just below $67,000 at the time of the transfer, reflecting a modest 1.7% increase over the past 24 hours.

In addition to Bitcoin, Musk has also hinted at the possibility of reinstating Dogecoin as a payment option for Tesla merchandise. Although no formal announcement has been made, these hints continue to fuel speculation about Musk’s broader vision for cryptocurrency within his companies.

photo source / Blockonome