After Two Years Hiatus Tesla Finally Performs a BTC Transaction

Arkham Intelligence, a company famed for their crypto data analysis, reports that Tesla has broken its 2-year-long hiatus to perform financial transactions using Bitcoin. The transaction involved $225 million worth of BTC, which was sent to an undisclosed wallet address. That was not the only BTC transaction Tesla performed within that period, as it completed other transactions that saw a total of $760 million worth of BTC transferred in less than a day. 

Three years ago, Tesla purchased about $1.5 billion worth of bitcoin, a move that placed BTC on a positive pedestal and increased corporate belief for the token, creating a bullish condition for BTC. In a matter of weeks, Tesla would go on to dispatch some of its BTC reserves. It was a volatility test from Elon Musk, who wanted to see how the market would respond if large amounts of BTC were easily liquidated. About 4,320 BTC was sold for that purpose.

In 2021, bitcoins were accepted as mode of payment for Tesla but that period was shortlived. Elon Musk, the CEO of Tesla announced that the decision to halt BTC payments was due to possible environmental consequences. He, however, mentioned that should Tesla verify that 55% of the energy fueling the Bitcoin network is renewable, Tesla would commence BTC transactions.

Recall that in addition to the 4,320 BTC Tesla sold off in 2021, the electric car manufacturing company also sold out 29,160 BTC in 2022. Despite these, Tesla still holds about $717 million worth of Bitcoin as reported by Arkham Intelligence. Analysts believe that the resent BTC transfers from Tesla could be an attempt by the company to shuffle accounts. In this case, the market may not have to worry about more selling pressure anything soon. Analysts from Spot On Chain believes that the undisclosed wallets that received the recent BTC transfers from Tesla probably belongs to Tesla.