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Elon Musk has sparked curiosity regarding his plans with a $760M Bitcoin stash previously held in Tesla’s crypto wallet. There’s currently a lot of speculation within crypto social media circles regarding what caused the decision and Musk’s next move.
Data from Arkham Intelligence showed that on Tuesday, October 15, 2024, wallets linked to Elon Musk’s Tesla transferred at least 11,500 Bitcoin in 26 transactions to unknown wallets. As a result of the latest Tesla Bitcoin transfer, on-chain data shows that the wallets now hold BTC worth only $6.74. The transfer is the first one the electric car manufacturer has done in its Bitcoin wallets since the last one in 2022.
Apprehension in the Crypto Community
The fact that the transactions involving the firm’s $760M Bitcoin stash were transferred to anonymous wallets has raised questions regarding the firm’s intentions. On-chain data shows that after the initial transfers, the firm spread its holdings into several unidentified BTC wallets, including $39.82 million, $31.92 million, and a large one of $102.36 million. There are divided opinions within crypto circles as to whether Tesla was working to protect its interests or whether there were plans to sell the firm’s assets.
There’s already some degree of apprehension within the cryptocurrency market that any plans by Tesla to dump the $760M Bitcoin stash into the market could add selling pressure and destabilize the digital asset’s price. With the cost of Bitcoin rallying around $76,000 at the time of writing, some experts suspect Tesla could execute a sale over the counter and potentially eliminate the possibility of a market disruption. Elon Musk has maintained studious silence since the Tesla Bitcoin transfer, which has led to even more speculation.
Sharp Market Reaction
According to data from Bitcoin Treasury, Tesla is among the largest corporate holders of Bitcoin, holding the fourth position among the US’s publicly traded companies. The leading contenders with bigger Bitcoin reserves include MicroStrategy, MARA Holdings, and Riot Platforms, with 252,000, 26,842, and 10,427 Bitcoins, respectively.
MicroStrategy is on record buying BTC worth $1.5 billion in February 2021, but there wasn’t much market movement surrounding the company’s stock during that time. The Bitcoin market reacted sharply after Arkham Intelligence announced the huge Tesla Bitcoin transfer, hitting $67,800 before falling below $65,000. However, the digital asset has since adjusted and was trading slightly above $67,000 at the time of going to press.
Tesla made headlines between January and February 2021 when it bought $1.5 billion worth of BTC. With Bitcoin retailing at between $29,000 and $40,000 during that period, Tesla most likely spent an average of $35,000 per Bitcoin. However, the company went on to sell a significant portion of the Bitcoin stash soon after that. The first sale involved at least 10% of its entire Bitcoin holdings. Later, in 2022, the company sold off another 75% of the remaining amount of BTC, most likely making a loss. Arkham Intelligence started tracking the company’s Bitcoin wallets in March 2022, during which time the firm had at least 11,509 BTC worth $770M.
Complicated Relationship with Crypto
Elon Musk has had an eventful and complicated relationship with cryptocurrencies since Tesla first bought Bitcoin in 2021. At the time, Musk spiked excitement within crypto circles when he announced that the firm would accept Bitcoin payments for his electric vehicle. However, potential buyers were disappointed when he reversed the decision, naming “serious environmental concerns” surrounding the high amounts of energy required for Bitcoin mining.
Despite the ambiguity surrounding his pronouncements on Bitcoin, some of Musk’s companies, like Tesla and SpaceX, have Bitcoin stashes on their balance sheets. The man who is known to have a soft spot for Dogecoin (DOGE) Musk mentioned during an interview a few months ago that he saw some merit in Bitcoin and several other cryptocurrencies. As a result, no one can correctly predict what Elon Musk could be planning with his $760M Bitcoin stash.
Conclusion
As Bitcoin rallies towards its all-time high of $73,000, pundits will be keenly watching what Tesla will do with its BTC holdings, with some predicting a new peak as we near the US presidential elections. Musk has publicly endorsed the crypto the Republican presidential nominee Donald Trump, whose popularity has risen within the crypto community, mainly because of his stance towards crypto.
