Tesla Moved $769M Bitcoins – Is the 4th Largest $BTC Holder Selling?

• Tesla just sent nearly all its Bitcoins (valued at $769M) to unknown wallets in 26 transactions. Is a sellout coming?
• The company bought $1.5B worth of Bitcoins in 2021 and sold 75% of them at a loss in 2022. After a 91% increase in the value of Bitcoin, Elon Musk might want to cash in on the profit.
• As the fourth-largest Bitcoin holder,Tesla's potential sellout could significantly impact the market and fuel a bearish move, sending $BTC to lower levels.

Eleven hours ago,Tesla moved 11,508.992 Bitcoins (worth $769M) to unidentified wallets. Now, only $8.06 worth of $BTC is left in Tesla's wallet.

What prompted the company to do this? Is it selling Bitcoins, like it did in 2022?

Most importantly, how will a sellout impact the market, considering Tesla is the fourth-largest Bitcoin holder?

Let's dig deeper into Tesla's Bitcoin move and explore the potential consequences.

Tesla's 11,509 Bitcoins Have Moved - What's Happening?

According to Arkham Intelligence, Tesla moved almost 100% of its Bitcoins (11,508.992 out of the estimated 11,509) to unknown wallets eleven hours ago.

Source: Arkham Intelligence

The Bitcoins were sent in 26 transactions, with individual values between $3 and $102.36M. Clearly, the first few transactions were tests to double-check the validity of the addresses.

Source: Arkham Intelligence

At this point,Tesla's Bitcoin holdings are virtually zero. It's the first time the company has touched its $BTC wallets since 2022, when it sold them at a loss.

For context,Tesla bought $1.5B Bitcoins in February 2021, when the crypto traded between $29K and $40K. So, the average buying price should have been $35K.

The company sold 75% of its $BTC holdings in early 2022. At a loss, no less. Only 11,509 $BTC were left, and those are the Bitcoins that just left its wallets eleven hours ago.Will We See Another Bitcoin Dump?

The most reasonable assumption is that Tesla is planning a massive sellout. Another possibility is that the old wallets were compromised, forcing the company to move the assets elsewhere.

But that's a bit stretched. Wallet compromises don't typically allow the holder the luxury of time, which could make only the sellout scenario viable.

As the fourth-largest Bitcoin holder, Tesla has significant pull in the market. A dump of this magnitude could surely fuel a bearish move.

On the other hand, a sellout doesn't seem in line with Elon Musk's pro-crypto attitude. His support for Donald Trump in the context of the former president's pro-crypto stance is telling.

However, Bitcoin has grown by ~91% since Tesla bought it, so Musk might finally want to cash out his investment.

Summary - To Sell or Not to Sell $769M Bitcoins?

Our educated guess is that Tesla will sell the Bitcoins to turn a profit. They might not sell everything, and it might not happen now, but soon' is a reasonable assumption.

It'll be interesting to see how a potential sellout will impact Donald Trump's favor with the crypto community. After all, his biggest supporterselling all his Bitcoins isn't exactly pro-crypto.

References

• Tesla Bitcoin Holdings (Arkham Intelligence)
• List of the Largest Bitcoin Holders (Bitcoin Treasuries)

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