The cryptocurrency community is abuzz with rumors following Tesla’s transfer of a sizable portion of its Bitcoin (BTC) holdings. More than 11,500 BTC were transferred to wallets linked to the electric car giant to unknown addresses, raising concerns about a possible liquidation.
However, despite these transactions, there are no clear indications that Tesla intends to liquidate its assets. According to Arkham, the target wallets are newly created and not tied to any cryptocurrency exchange, suggesting that these moves could be strategic in nature.
Tesla sold Bitcoin on the OTC market?
The BTC in play, valued at around $760 million, nearly emptied Tesla’s cryptocurrency reserves, leaving only around $8 in its original wallets. This activity comes on top of two years of minimal movements.
Throughout history, Tesla’s engagement with Bitcoin has experienced several ups and downs. Initially, after buying $1.5 billion in Bitcoin in 2020, the electric car company sold approximately 10% in early 2021.
By July 2022, it had moved about 75% of its remaining BTC as market values fell from their peak in November 2021.
Currently, Tesla remains the fourth largest Bitcoin holder among publicly traded U.S. companies. Only MicroStrategy and mining companies Marathon Digital Holdings and Riot Platforms hold more.
The nature of Tesla’s recent trading suggests that they may be preparing for an over-the-counter (OTC) transaction. However, others also see this development as not entirely bearish.
“There is no evidence yet that this is an OTC trade. Even if it was, that means someone else bought it, so it’s not all bearish. Who knows,” says Sir Doge of the Coin.
Tesla’s involvement with Bitcoin goes beyond buying and selling. In 2021, it accepted Bitcoin payments for its vehicles for a short period.
However, it reversed this decision two months later, citing the environmental impact of Bitcoin mining. Its CEO, Elon Musk, has indicated that Tesla could return to accepting Bitcoin if mining becomes more environmentally friendly.
Despite the market’s initial trepidation, the Bitcoin price is holding steady, currently at around $67,000. This resistance is supported by significant inflows into spot Bitcoin ETFs.
On the day Tesla moved its BTC, spot Bitcoin ETFs booked inflows totaling $371 million. BlackRock’s iShares Bitcoin Trust fund alone raised $288.84 million, indicating strong investor appetite.
