Elon Musk and Tesla liquidate cryptocurrencies: the mystery of 760 million in Bitcoin

Elon Musk’s relationship with cryptocurrencies remains one of the most fascinating issues in the digital market. While Tesla’s founder has repeatedly expressed skepticism toward Bitcoin, his automotive company had accumulated significant holdings in this cryptocurrency until it decided to almost completely divest its positions. In 2024, Tesla made a major move that raised questions about Musk’s true intentions regarding digital currencies and the future of his involvement in the crypto sector.

Tesla’s Major Bitcoin Disposition

According to data provided by Arkham Intelligence, Tesla has nearly entirely transferred its cryptocurrency wallet, moving Bitcoin worth approximately $760 million across wallets with unknown ownership. The operation was completed by transferring over 11,500 BTC, leaving only tiny fractions in Tesla’s official wallets. This maneuver represents one of the most significant moves Elon Musk has made in the crypto sector in recent years, sparking speculation about a possible full sale or a strategic transfer to alternative custody solutions.

The total value of the transaction, calculated at current Bitcoin prices of $68,220 per unit, confirms the scale of the operation and the importance of Tesla’s previous position in the digital market.

How Much Bitcoin Did Tesla Hold and Its Investment Path

Tesla first entered the cryptocurrency market in February 2021, acquiring Bitcoin for $1.5 billion. At that time, the company announced its intention to accept payments in this digital currency, generating optimism in the sector. However, Tesla’s maximum position in the sector reached $2.5 billion, according to Arkham Intelligence’s reconstructions.

Elon Musk’s strategy changed drastically in 2022, when Tesla decided to liquidate 75% of its holdings, a loss-making operation due to falling prices. With this new move in 2024, Tesla has essentially completed its exit from the sector, consolidating an investment that did not deliver the expected returns for the company.

Despite these movements, Tesla remains the fourth-largest institutional holder of Bitcoin among publicly traded companies. Only MicroStrategy, a software and business intelligence firm, and the Bitcoin mining companies Riot Platforms and MARA Holdings hold larger positions in the global institutional investor ranking.

Elon Musk’s Strange Relationship with Cryptocurrencies

The full picture of Elon Musk’s stance on cryptocurrencies is more nuanced than it appears from Tesla’s investment data alone. In an interview broadcast on YouTube in July of the same year, Musk stated that he believes Bitcoin and other digital currencies do possess intrinsic merits. However, he also admitted a strong personal preference for Dogecoin, a cryptocurrency created as a humorous joke but which has gained a considerable community of followers.

This ambiguous attitude of Elon Musk reflects a broader characteristic of his approach to the digital market: while he does not deny the general value of cryptocurrencies, his true conviction seems to lean toward alternative solutions, particularly Dogecoin, which he considers a cryptocurrency with more practical features than Bitcoin.

Tesla Among Institutional Bitcoin Investors

Despite the decision to nearly fully liquidate its holdings, Tesla continues to hold a prominent status among institutional investors. The fact that four U.S.-listed companies dominate the ranking of the largest cryptocurrency holders demonstrates how the traditional sector has begun to regard Bitcoin as a legitimate portfolio asset, regardless of initial doubts.

Elon Musk and Tesla’s liquidation marks a critical moment in the debate over institutional adoption of cryptocurrencies. While some interpret this move as a loss of confidence in Bitcoin as an investment tool, others see it as a simple portfolio optimization in a highly volatile market. What remains certain is that Musk’s actions will continue to influence market sentiment in the crypto space for the foreseeable future.