Elon Musk's Tesla, one of the largest holders of Bitcoin [BTC], recently moved nearly all of its $760 million worth of BTC to unknown wallets, sparking speculation that the automaker may be preparing to sell off its BTC holdings.
Tesla Bitcoin Transfer
According to a report by Arkham Intelligence, on October 15, Tesla-related wallets moved more than 11,500 Bitcoin to undisclosed wallets.
The transfer has sparked curiosity and concern in the cryptocurrency community about Tesla’s intentions with its large cryptocurrency investment.
After Tesla transferred a significant amount of BTC, the company's cryptocurrency wallet now has only about $6.74 worth of BTC.
Executed in three separate batches, the transaction moved approximately 3,385 BTC (worth approximately $225 million) to three unknown Pay to Public Key Hash (P2PKH) addresses.
The surprise move has sparked much speculation online as Tesla's motives remain unclear.
Meanwhile, Bitcoin, which was trading above $67,000, fell slightly to $66,500 before recovering to $67,139.81 with a 2.53% gain in the last 24 hours according to CoinMarketCap.
As market activity continues to intensify, some speculate that BTC may be positioning itself to hit new record highs.
Is This Trump's Cryptocurrency Funding Move?
Still, Tesla’s recent Bitcoin move has sparked speculation in the cryptocurrency community, with many suggesting it is related to former President Donald Trump’s rumored cryptocurrency project.
For example, X (formerly Twitter) user That's My Quant suggested,
“@elonmusk funds @realDonaldTrump's crypto project.”
Adding to the controversy was another X user who said,
“Elon is about to eliminate Trump’s election chances. He is part of the Trump team and a bitcoin supporter!”
It may be because Musk recently attracted significant attention when he attended a rally in Butler, Pennsylvania in support of Republican presidential candidate Donald Trump.
Wearing a “Make America Great Again” hat, Musk publicly aligned himself with Trump's campaign, calling himself “Dark MAGA.”
He even said,
“As you can see, I'm not just MAGA, I'm dark MAGA.”
At the same time, Trump's position in the crypto community has also increased significantly.
This unexpected combination of two influential figures has brought a new dimension to the ongoing discussions about politics and cryptocurrencies.
Whether these speculations are correct or not remains uncertain at this time.
Tesla's Bitcoin Connection
That said, the relationship between Tesla and Bitcoin has been dynamic since its bold $1.5 billion investment in early 2021.
This is due to the aim of diversifying cash reserves and even exploring BTC as a payment method.
However, by 2022, Tesla had sold 75% of its shares due to market volatility.
As of March, Arkham Intelligence reported Tesla held 11,509 BTC, worth about $770 million, making it the fourth-largest Bitcoin holder among US public companies after MicroStrategy, MARA Holdings, and Riot Platforms according to Bitcoin Treasuries data.