Cash News
Elon Musk’s ventures into cryptocurrency are raising eyebrows once again. Blockchain analytics firm Arkham Intelligence reported that Tesla recently moved about $765 million worth of Bitcoin to unidentified wallets.
This massive transfer has sparked a flurry of speculation. What’s Tesla planning next? Will they sell or is there something else at play? Tesla hasn’t commented, leaving experts and crypto-watchers alike in suspense.
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According to BitcoinTreasuries, Tesla holds the fourth-largest stash of Bitcoin among U.S. public companies. Only MicroStrategy and crypto mining giants like MARA Holdings and Riot Platforms hold more.
Tesla’s Bitcoin holdings, though substantial, still make up less than 1% of the company’s total $705 billion market cap. This starkly contrasts with other companies where Bitcoin represents a hefty chunk – sometimes over 25% – of their value.
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Tesla first made headlines in early 2021 when it invested $1.5 billion in Bitcoin. Musk, never one to shy away from risk, saw the move as a way to diversify Tesla’s portfolio and support its interest in accepting crypto car payments.
That news alone sent Bitcoin soaring by over $10,000. But Musk’s love affair with Bitcoin didn’t last long. By mid-2021, he had hit the brakes, citing concerns over Bitcoin mining’s reliance on coal and other fossil fuels, which didn’t align with his broader sustainability mission. The about-face sent shock waves through the crypto community, with Bitcoin dropping more than 10% almost overnight.
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Still, Musk stood firm, declaring that Tesla wouldn’t sell any of its Bitcoin and would resume accepting it for purchases once mining shifted toward renewable energy sources. That didn’t last long, either.
By the summer of 2022, Tesla had sold off most of its Bitcoin at about $20,000 per coin, considerably lower than it initially paid. Critics quickly pointed out that the company had sold near the bottom of the market, losing significant potential profit.