Elon Musk‘s Tesla (TSLA), one of the largest corporate holders of Bitcoin (BTC-USD), has sparked speculation by moving nearly its entire $760 million Bitcoin stash to unknown wallets, according to a CoinDesk report. A cryptocurrency wallet is a physical device, medium, program, or online service that stores the public and private keys needed for crypto transactions.
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The report cited data from crypto data firm Arkham Intelligence, which reported that more than 11,500 Bitcoins were transferred from Tesla-associated wallets to untraceable destinations. This left the company’s wallets with only $6.65 worth of BTC.
TSLA Is the Fourth-Largest Bitcoin Holder
This move is significant as Tesla is the fourth-largest Bitcoin holder among publicly traded U.S. companies, according to BitcoinTreasuries data. TSLA trails behind MicroStrategy (MSTR), Marathon Holdings (MARA), and Riot Platforms (RIOT).
According to Arkham Intelligence data, the EV major first invested $1.5 billion in Bitcoin in February 2021, and at one point, its holdings grew to $2.5 billion. However, in early 2022, Tesla sold 75% of its Bitcoin holdings at a loss, reflecting the volatility in the cryptocurrency market. According to Arkham, the automaker held 11,509 Bitcoins in March, valued at around $770 million.
When Tesla initially acquired Bitcoin, Musk announced plans to accept the cryptocurrency as payment for vehicles. However, these plans were dropped shortly afterward, citing environmental concerns over Bitcoin mining’s carbon footprint.
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about Tesla stock, with a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sells. Over the past year, TSLA stock has declined by more than 10%, and the average TSLA price target of $207.83 implies a downside potential of 5.4% from current levels.
