The cryptocurrency community is buzzing with rumours after Tesla moved a large chunk of its Bitcoin (BTC) holdings. More than 11,500 BTC were moved from wallets linked to the electric car giant to anonymous addresses, sparking fears of a potential sell-off.
Despite these transactions, there is no clear indication that Tesla is planning to liquidate its holdings. According to Arkham, the future wallets are newly created and not tied to any cryptocurrency exchanges, suggesting that these moves may be strategic.
Did Tesla sell Bitcoin on the OTC market?
The Bitcoin in question, valued at around $760 million, has nearly emptied Tesla’s cryptocurrency reserves, leaving just around $8 in its original wallets. This activity comes after two years of little movement.
Historically, Tesla’s interaction with Bitcoin has seen many ups and downs. It started by buying $1.5 billion worth of Bitcoin in 2020, then the company sold about 10% in early 2021. By July 2022, it had dumped about 75% of its remaining Bitcoin holdings as market values declined from their peak in November 2021.
Currently, Tesla remains the fourth-largest holder of Bitcoin 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 transactions suggests that it may be preparing for an over-the-counter (OTC) deal. However, some also believe that this development is not entirely negative.
“There is no evidence that it is an OTC trade yet. Even if it was, it means someone else bought it so it is not entirely negative. Who knows,” said Sir Dog of the Coin.
Tesla’s involvement with Bitcoin goes beyond buying and selling. In 2021, the electric vehicle company briefly accepted Bitcoin payments for its vehicles.
However, it reversed that decision two months later, citing the environmental impact of Bitcoin mining. CEO Elon Musk has suggested that Tesla may accept Bitcoin again if mining becomes more environmentally friendly.
Despite the initial market jitters, Bitcoin’s price remains stable, currently hovering around $67,000. This stability is supported by large inflows into Bitcoin spot ETFs.
On the day Tesla moved its bitcoin, spot bitcoin ETFs saw inflows of $371 million. BlackRock’s iShares Bitcoin Trust alone took in $288.84 million, showing strong investor appetite.
This influx supports continued confidence in the value of Bitcoin despite potential market volatility that could be driven by major companies like Tesla.
