Tesla Transfers $769 Million in Bitcoin to Unknown Wallets

TLDR

• Tesla moved $769 million in Bitcoin across multiple unknown wallets
• This is the first movement of these funds since June 17, 2022
• The transfer involved 11,500 Bitcoin distributed to seven different wallets
• Tesla’s Q3 earnings report on Oct. 23 may provide more information
• Some speculate this could signal a potential reactivation of Bitcoin payments for Tesla

On October 15, 2024, Tesla, the renowned electric vehicle manufacturer, moved a significant portion of its Bitcoin holdings worth approximately $769 million.

This transfer, involving 11,500 Bitcoin, marks the first movement of these funds in over two years, with the last activity recorded on June 17, 2022.

According to data from Arkham Intelligence, the transfer began at around 20:41 UTC, following several small test transactions.

The Bitcoin was then distributed across seven different wallets, all of which remain unidentified at this time.

This is not selling, it is more likely taking direct custody of the coins, which would signal a reactivation of btc payments.

The tell is the legacy address format, which exchanges don’t use anymore for coins that are going to be tx’ed in the near term.

— Trygg.btc 🧙🏻‍♂️ (@TryggBTC) October 15, 2024

Tesla’s relationship with Bitcoin has been a subject of interest in the cryptocurrency and business worlds. The company first made headlines in February 2021 when it acquired $1.5 billion worth of Bitcoin.

Shortly after, Tesla CEO Elon Musk announced that the company would accept Bitcoin as payment for its vehicles. However, this decision was reversed just months later in May 2021, citing concerns over the environmental impact of Bitcoin mining.

The company’s last known Bitcoin sale occurred in June 2022, when it sold 29,160 Bitcoin at an average price of $20,000 per coin.

This sale remains Tesla’s largest to date. Prior to that, Tesla had sold 4,320 Bitcoin a month after its initial $1.5 billion purchase in 2021.

At the time, Musk stated that this smaller sale was to demonstrate the liquidity of Bitcoin and its minimal impact on the market.

Before this recent transfer, Tesla held the position of the fourth-largest corporate holder of Bitcoin, following MicroStrategy, Galaxy Digital, and Riot Platforms.

The recent movement of funds has raised questions about Tesla’s intentions for its Bitcoin holdings.

As of now, Tesla has not made any official announcement regarding plans to sell its Bitcoin or the reason behind this transfer.

The company’s upcoming third-quarter earnings report, scheduled for October 23, 2024, may provide more insight into this recent activity.

Some observers in the cryptocurrency community have speculated that this transfer might not necessarily indicate an impending sale.

One theory suggests that Tesla could be taking direct custody of its Bitcoin holdings. This move could potentially signal a revival of Bitcoin payments for Tesla products.

Order your #Tesla with #Bitcoin. pic.twitter.com/M6cGftlIor

— Michaël van de Poppe (@CryptoMichNL) March 24, 2021

Supporting this theory is the use of a legacy address format in the transfer, which is typically not employed by exchanges for near-term transactions.

It’s worth noting that while Tesla has moved its Bitcoin, Elon Musk’s other company, SpaceX, continues to hold its Bitcoin stash. Current estimates place SpaceX’s Bitcoin holdings at approximately 8,285 Bitcoin, valued at around $556 million.

Interestingly, the cryptocurrency market showed little reaction to Tesla’s Bitcoin transfer. At the time of writing, Bitcoin was trading just below $67,000, showing a modest increase of 1.7% over the past 24 hours.

In a related development, Musk hinted in August at the possibility of reinstating Dogecoin as a payment option for Tesla merchandise.

While no official announcement has been made, Musk’s comments have once again brought attention to the meme-inspired cryptocurrency.