In a major development, EV juggernaut Tesla Inc. TSLA has reportedly transferred nearly all of its Bitcoin BTC/USD stash to unknown wallets, sparking speculation about whether CEO Elon Musk planned to offload the company’s cryptocurrency holdings.
What Happened: A wallet labeled as Tesla moved 11,500 BTCs, worth $760 million of the leading cryptocurrency, to several unidentified wallets Tuesday, according to on-chain analytics firm Arkham Intelligence. As of this writing, the wallet holds an inconsequential $6.7 worth of the asset.
Tesla didn’t immediately respond to Benzinga’s request for clarity on the true purpose of the move.
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Why It Matters: Tesla's Bitcoin holdings have remained unchanged since the fourth quarter of 2022. Their Bitcoin journey began in January 2021, when it first acquired $1.5 billion worth of the leading cryptocurrency.
The tech behemoth previously accepted Bitcoin as a payment option for vehicles before ending the practice due to concerns about the energy consumption used in Bitcoin mining.
While the exact amount of Bitcoin previously purchased and currently held by Tesla is not known to the tee, many have estimated based on the prices of Bitcoin at specific points in time.
Prior to the transfer, Tesla has amassed an unrealized profit of 129% on its Bitcoin investment, according to data from CoinGecko.
Price Action: At the time of writing, BTC was trading at $66,824.86, up 1.34% in the last 24 hours, according to Benzinga Pro. Shares of Tesla closed 0.19% higher at $219.57 during Tuesday’s regular session.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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