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- Tesla has moved its Bitcoin holdings, according to on-chain data tracked by Arkham Intelligence.
- Tesla’s Bitcoin holdings have been split into seven different wallet addresses.
- Analysts suggest the move could be driven by a change in custody to secure a loan against the Bitcoin holdings.
Electrical vehicle manufacturer Tesla (TSLA) has recently moved all of its Bitcoin (BTC) tokens – worth more than $776 million – to seven different wallet addresses. The moves, reported by crypto intelligence firm Arkham, caught the attention of crypto traders as Bitcoin movements by large-wallet investors typically affect the coin’s price depending on how these holdings are moved.
While transfers from wallets to exchanges can negatively impact price because they signal the owner’s willingness to sell, inter-wallet transfers on the other hand usually don’t have a significant impact on the token’s price.
Tesla’s Bitcoin stash moved as part of wallet rotation
Tesla transferred 11,509 Bitcoin to different wallet addresses on October 15. These addresses have now been linked to the firm’s wallets. Analysts at Arkham Intelligence said the transfers were wallet rotations of the Bitcoin owned by the electric car manufacturer.
On-chain data shows that Tesla split its holdings into seven wallets, each holding between 1,100 and 2,200 BTC. Two of the seven addresses received the largest volume of BTC. “1Fnhp” and “1LERL” observed transfers worth $142.2 million and $128.1 million, respectively.
Tesla Bitcoin wallet transfers. Source: Arkham Intelligence.
Massive transfers of Bitcoin initially fueled fears of a price decline, with BTC holders across social media platforms highlighting their concerns about Tesla preparing a dump. However, the wallet addresses have not moved their BTC holdings since October 15.
Bitcoin’s price doesn’t seem to have been influenced by the moves. BTC closed at $67,377 on October 2021, broadly unchanged from the $67,074 close seen on October 15. At the time of writing, the largest cryptocurrency hovers around $66,500.
Analysts believe Elon Musk is “likely” securing a loan against Tesla’s Bitcoin
The analysis of Tesla’s Bitcoin transfers led Arkham to conclude that its CEO Elon Musk is likely securing a loan against the BTC. Tesla’s custodian is Coinbase Prime Custody, and the recent move could likely be driven by a change in custody.
Tesla’s moves hold significance for crypto market participants since the firm is the fourth-largest corporation to hold Bitcoin, according to Arkham Intelligence data, after MicroStrategy (MSTR), Marathon Digital (MARA) and Riot Platforms (RIOT). Elon Musk’s other business SpaceX holds 8,285 Bitcoins.