This is a massive transfer of bitcoins which has just been detected by the analysis company Arkham Research. Electric vehicle giant Tesla has indeed moved more than 11,500 BTC, or around $770 million, to new addresses. This sudden movement has crypto market observers wondering: are Elon Musk and Tesla preparing a major sale of their bitcoin holdings?
Tesla, a Bitcoin juggernaut that has made a name for itself
Tesla’s love affair with Bitcoin began in February 2021, whenElon Musk had created euphoria by announcing a massive purchase of $1.5 billion of BTC by his company. This announcement propelled the price of Bitcoin to more than 37 000 dollars. Since then, Tesla has sold 75% of its bitcoins, but still retains a war chest of 11 509 BTC according to estimates.
Highlights of the Tesla-Bitcoin relationship:
- February 2021: Purchase of $1.5 billion in BTC
- 2021: Sale of $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 fuel speculation. Indeed, in the past, sales of bitcoins by Tesla have often been preceded by such movements of funds. Some experts therefore see this as a sign of a potential upcoming liquidation of the rest of the company’s BTC holdings.
The timing also raises questions, since this transfer comes a few days before the publication of Tesla’s 3rd quarter 2024 financial results, scheduled for October 23. Could selling these bitcoins be a way to boost the company’s accounts in the event of a drop in automotive revenues? This is a hypothesis put forward by some analysts.
A checkered relationship between Elon Musk and Bitcoin
If Tesla’s initial purchase of bitcoins was seen as a very positive signal for the adoption of cryptocurrency, the aftermath was more chaotic. Elon Musk first promised that Tesla would accept payments in BTC, before reversing his decision, citing the environmental impact of mining.
This about-face sparked strong criticism in the crypto community. Since then, the whimsical billionaire has remained more discreet about his intentions regarding Bitcoin, leaving doubt. With this new massive transfer, all scenarios are on the table.
The main Musk/Bitcoin developments in brief:
- Musk announces that Tesla will accept BTC payments
- About-face a few months later, BTC banned for environmental reasons
- Strong criticism from the crypto community
- Musk has since remained more evasive on his vision of Bitcoin
All eyes on October 23 and Tesla’s results
Tesla is undeniably one of the heavyweights in Bitcoin, alongside companies like MicroStrategy or MARA Holdings. With $770 million worth of BTC still in its coffers, a change in strategy from the manufacturer could have a significant impact on the market.
All eyes are therefore turned towards the October 23 and the publication of Tesla’s financial results. These figures, coupled with a possible communication from Elon Musk, could lift the veil on the real intentions behind this mysterious transfer of bitcoins. The market is holding its breath.
Cover photo: ©ink drop – stock.adobe.com
My name is Michael. I am a journalist for this magazine where I analyze and break down current events in order to provide you with articles that will allow you to have as nuanced and fair an understanding of global issues as possible. Passionate about creating bridges between stories and people, I joined this site to practice interactive journalism, where each article is an open dialogue with the reader.
2024-10-17 04:35:00