Elon Musk and Tesla: the massive transfer of Bitcoin worth 760 million

Tesla’s move led by Elon Musk in the cryptocurrency market continues to raise questions. As of October 2024, wallets associated with the automaker have moved a large amount of Bitcoin to unidentified wallet addresses, fueling speculation about the true intent behind this liquidation.

Massive Transfer: Tesla Moves 11,500 BTC to Unknown Wallets

According to data from Arkham Intelligence, a blockchain analysis firm, Tesla has moved about 11,500 Bitcoin worth a total of $760 million to addresses whose ownership remains unknown. This transfer accounts for nearly all of the company’s cryptocurrency holdings.

Subsequently, Tesla’s wallets hold only residual amounts of BTC, practically insignificant. This operation positions Tesla as a company that has drastically reduced its exposure to the cryptocurrency sector.

From Wealth to Liquidation: Tesla’s Cryptocurrency History

Elon Musk’s relationship with Bitcoin has gone through very different phases. In February 2021, Tesla invested $1.5 billion in Bitcoin, a move considered revolutionary for an automotive company. At that time, the company’s holdings peaked at $2.5 billion.

However, the attitude changed drastically. In early 2022, Tesla sold 75% of its Bitcoin holdings, incurring significant losses in the process. This shift reflected a redefinition of the company’s strategic priorities regarding cryptocurrencies.

Despite fluctuations, Tesla remains the fourth-largest Bitcoin holder among publicly traded U.S. companies. Only MicroStrategy, MARA Holdings, and Riot Platforms hold more substantial positions in the sector.

Musk and Cryptocurrency Value: Between Bitcoin and Dogecoin

Elon Musk’s attitude toward cryptocurrency is not one-sided. In a public statement last year, Musk said that in his opinion “Bitcoin and probably other cryptocurrencies have intrinsic merits.” However, he added an interesting note: his personal preference leans toward Dogecoin, suggesting a distinction between the recognized technical value of Bitcoin and the emotional motivations that attract him to other digital currencies.

This dichotomy reflects Musk’s complex stance in the crypto landscape: while acknowledging Bitcoin’s technological value and potential, his strategic loyalty does not seem to focus solely on this cryptocurrency.

When Tesla originally announced its intention to accept Bitcoin payments, the plans were later abandoned due to environmental concerns regarding Bitcoin’s energy consumption. This issue remains a central topic in the debate over the sustainability of cryptocurrencies as a payment tool for large corporations.