- Tesla sends all of their Bitcoin to 7 wallets amidst BTC’s $67K swing.
- Despite the introduction of the driverless cab, TSLA stock dipped 9%.
- Analysts are split between a potential sell-off and security measures.
Tesla, the leading e-car manufacturer worldwide, has decided to move all its Bitcoin (BTC) holdings in a batch of transactions. This marks the first time in two years that the electronic vehicle giant has touched its cold BTC holdings.
Bitcoin Cruises Past $67K, Tesla Takes Action
Elon Musk, tech mogul and owner of Tesla, previously gave his “safe word” on not selling Bitcoin, Ethereum (ETH), or his favorite meme coin, Dogecoin (DOGE). At first, Musk’s company sent $75 million to a new crypto wallet, followed by two transactions of $76 million and $77 million to another new address.
According to SpotOnChain, in a few hours on Wednesday morning, all of Tesla’s 11,509 Bitcoins, estimated to be worth $773M, were spread across these seven new wallets. The move comes as BTC posted its highest monthly price, claiming a 30-day high of $67,803.50 on Wednesday, October 16, 2024.
Motives Behind Tesla’s Major Bitcoin Move
Crypto analysts and market watchers have questioned the reasoning behind Tesla’s massive Bitcoin move after two years of dormancy. The renaissance in Bitcoin ETFs has sparked a remarkable rally for the flagship crypto asset, flipping the script after a slow start this October.
Musk casually stated that Tesla Inc. has no intention of selling its crypto stash. The temptation can be hard to resist, as BTC has soared by 220% since Tesla’s last Bitcoin sell-off in June 2022. Back then, EMusk and Tesla settled for a much lower price of around $20,000, offloading 29,160 Bitcoins.
The $776 million transactions to undisclosed crypto wallets could be a security measure. Keeping the 11,509 BTC tokens in a diversified manner makes it more impervious to hacking, which is still a major point of consideration for offline crypto wallets.
On the Flipside
- Originally, Tesla Inc. held a massive stash of 42,902 Bitcoins (BTC), but the car company sold 75% of its BTC holdings in July 2022.
Why This Matters
Heavyweights in the technology industry are expressing support for Bitcoin, which is crucial in further crypto adoption. Potential sell-offs can instantly reflect on the coin’s price unless sold over the counter (OTC).
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