#cryptonews
Elon Musk’s Tesla has transferred nearly all of its Bitcoin worth $760m to unknown wallets, sparking rumors that the automaker might be selling off its holdings.
On Tuesday, wallets linked to Tesla moved over 11,500 Bitcoin to wallets with undisclosed ownership, Arkham Intelligence data showed. Consequently, Tesla’s wallets now hold only about $6.74 in BTC.
Back in Feb. 2021, Tesla made headlines by investing $1.5b in Bitcoin, a bold step at a time when most companies were steering clear of the volatile cryptocurrency.
This move is the first time the automaker has operated its Bitcoin wallets since selling most of its holdings in 2022.
Based on this, the company likely bought its Bitcoin at an average price near $35,000. It explained the move as a way to increase flexibility in diversifying and maximizing returns on its cash reserves.
Tesla acquired its Bitcoin between Jan. and early Feb. 2021, when the cryptocurrency traded between $29,000 and $40,000.
However, the firm sold off 75% of its Bitcoin holdings at a loss in early 2022. By March, when Arkham began tracking Tesla’s Bitcoin wallets, the company still held around 11,509 Bitcoin, valued at about $770m.
Tesla also revealed plans to accept Bitcoin as payment for its products, starting on a trial basis, subject to legal considerations.