Tesla transfers entire $765 million Bitcoin holding to unknown wallet
Tesla, the electric vehicle giant, has just moved its entire Bitcoin stash worth more than $765 million to a new digital wallet. The move marks a first for the company that first embraced cryptocurrency before getting cold feet. However, despite the change in tone, Tesla still stands as one of the few big public corporations to have put a portion of their cash reserves into cryptocurrency.
Tesla's history with Bitcoin
In early 2021, Tesla invested a whopping $1.5 billion in Bitcoin and started accepting the cryptocurrency for new vehicle purchases. However, citing concerns over the energy consumption of Bitcoin mining and transactions, especially those on fossil fuels like coal, Tesla later suspended vehicle purchases using Bitcoin. Notably, despite the suspension, the company clarified it wasn't selling its stake in Bitcoin. It planned to resume accepting it as payment once the network showed a greater reliance on renewable energy sources.
Tesla's Bitcoin holdings and market fluctuations
Despite the market volatility of Bitcoin in 2022, Tesla's holding grew to $2 billion. The company also divested some 75% of its Bitcoin position during the same period. According to Bitcoin Treasuries, Tesla now holds the fourth largest amount of Bitcoins among companies worldwide with a total of 9,720 Bitcoins — even surpassing Coinbase.
Speculations surround Tesla's recent Bitcoin transfer
The motive behind Tesla's recent transfer of nearly all its Bitcoins to new, unidentified wallets remains unclear. The move has sparked speculation in the crypto world about whether Tesla plans to sell or buy more Bitcoin. Some also suggest that this could indicate a potential return to accepting cryptocurrency payments for its vehicles, as hinted in its software last year. However, no concrete evidence has been presented to support any of these theories so far.
