Bitrabo Editorial
Tesla, the renowned electric vehicle company led by Elon Musk, has relocated its entire collection of 9,720 Bitcoin—worth more than $760 million—to new and currently unknown wallets. This major development, as noted by Arkham Intelligence, a blockchain analytics company, has sparked considerable speculation among Bitcoin enthusiasts.
Currently, the reasons behind Tesla’s Bitcoin transfer remain ambiguous. Experts are discussing whether this action indicates a plan to sell their assets, add to their Bitcoin holdings, or possibly revive payments for Tesla vehicles—a feature hinted at in software updates from previous years. Nonetheless, no conclusive proof backing any of these scenarios has emerged so far.
Is Tesla Liquidating Its Bitcoin?
Ki Young Ju, CEO of analytics firm CryptoQuant, mentioned that it is unclear if Tesla’s actions signify a simple internal wallet adjustment or a precursor to a sale. He stated: “Tesla moved Bitcoin to other wallets. It’s still unclear if it’s internal shuffling or selling. Even if they sold, the impact would be slightly more than half of the German govt’s. Their realized profit was $816M, while Tesla’s is $515M as of today.”
Moreover, the analytics firm Spot On Chain indicated that the new wallets likely remain under Tesla’s control. They noted that these wallets were inactive for two years prior to this transaction, suggesting it may just be part of routine internal processes.
“Tesla transferred all BTC to 7 new wallets 4 hours ago after 2 years of dormancy. Note that it is likely these are just new wallets belonging to Tesla. Elon Musk has expressed that BTC is his ‘safe word’ and he still owns and has no intention of selling his Bitcoin, Ethereum, or Dogecoin,” the firm remarked on X.
Adding to the ongoing speculation, Musk’s comments regarding Bitcoin portray a mixed stance. In December 2020, he called Bitcoin his “safe word,” indicating his personal affinity for it. Later, in March 2022, Musk affirmed that he retains his holdings in Bitcoin, Ethereum, and Dogecoin to counter inflation. Yet, he has also voiced doubts, once comparing Bitcoin to fiat currency, calling it “almost as bs.”
Additionally, crypto analyst Fejau challenges the idea that Tesla is on the verge of liquidating its Bitcoin assets. He suggested that it would be illogical for Musk, a backer of President Trump with plans for a “Strategic Bitcoin Stockpile,” to sell such holdings just before an election. “Why would Elon, a major endorser of Trump’s campaign which is very pro crypto, decide to liquidate Tesla Bitcoin holdings 30 days before the election? There’s a serious lack of critical thinking going on here,” he asserted.
On the other hand, Jacob King, CEO of WhaleWire, speculated that Tesla might be conducting an over-the-counter (OTC) sale of its Bitcoin, suggesting the potential for liquidation. “Tesla has just moved a massive $760 million worth of Bitcoin in an OTC deal – it seems like they’re dumping,” he expressed on X.
At the time of writing, Bitcoin was trading at $67,101.
