Tesla Moves $770M BTC, Is Elon Musk Planning to Use Bitcoin as Collateral for Tesla Loans?

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Earlier today, Elon Musk’s Space Exploration Technologies Corporation (SpaceX) transferred all its Bitcoins (BTC) to several different unknown addresses. According to on-chain data, SpaceX transferred 11,509 Bitcoins, worth more than $770 million, to seven new wallets after remaining dormant for the past two years.

As a result, there has been more speculation as to why Tesla made such a drastic move to its Bitcoin holdings. Among them is the possibility of internal shuffling to reduce the security threats of its Bitcoin holdings. 

The notion of Bitcoin sales by Tesla was not outrageous as the company sold 75 percent of its BTC holdings in 2022 at a loss. As of this report, the company’s Bitcoin holdings had made a small profit.

Is SpaceX Looking to Do Business with its Bitcoin Holdings?

According to Pierre Rochard, the vice president of research at Riot Platforms Inc. (NASDAQ: RIOT), SpaceX could be aiming to utilize its Bitcoin holdings as collateral for loans. Rochard cited a recent announcement by Cantor Fitzgerald, a leading global financial services firm, to launch a Bitcoin financing business to provide leverage to BTC investors.

Notably, Cantor Fitzgerald’s CEO Howard Lutnick is the transition co-chair of the Trump presidential campaign to POTUS and also a DOGE founding member.

The motion has, however, been disputed by some observers as Tesla Inc. (NASDAQ: TSLA) currently holds more than $20 billion in cash.

Bigger Picture

Musk and his unicorns have remained supportive of blockchain technology as they hold Bitcoin, Ethereum, and Dogecoin. Currently, Musk’s X platform is in the process of launching its payment feature, which will most likely integrate digital assets. 

As a result, Musk and his unicorns are less likely to be selling their crypto holdings now, especially after Donald Trump promised to force the United States to hold its Bitcoin holdings.