
SpaceX transferred all its Bitcoins, worth over $770 million, to unknown addresses after remaining dormant for two years.
The move has sparked speculation about Tesla's reasons, including potential security measures and using Bitcoin as collateral for loans.
Tesla's past Bitcoin sales and current cash holdings suggest that selling is unlikely, especially with Musk's support for blockchain.
Earlier today, SpaceX, Elon Muskโs Space Exploration Technologies Corporation, made a surprising move by transferring its entire Bitcoin (BTC) holdings to several unknown addresses. On-chain data shows SpaceX shifted 11,509 BTCโworth over $770 millionโto seven new wallets after leaving the funds untouched for 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 idea of SpaceX or Tesla selling more Bitcoin isnโt out of the question. In 2022, Tesla sold 75% of its Bitcoin holdings at a loss. Currently, however, Teslaโs remaining Bitcoin reserves have gained slightly, showing a small profit.
So, what caused this dramatic move?
Is SpaceX Preparing for Bitcoin-Backed Loans?
Pierre Rochard, Vice President of Research at Riot Platforms Inc., suggests SpaceX might be preparing to use its Bitcoin as collateral for loans. He pointed to a recent announcement by Cantor Fitzgerald, a financial services giant, which is launching a Bitcoin financing business to provide loans to BTC investors.
The timing of SpaceXโs transfer hints it could be positioning itself to take advantage of such opportunities.
Notably, Cantor Fitzgeraldโs CEO, Howard Lutnick, is involved in both finance and politicsโhe is the transition co-chair for Donald Trumpโs presidential campaign and a founding member of the Dogecoin (DOGE) movement.
Doubts About the Loan Theory
However, some observers doubt SpaceX or Tesla need to borrow against their Bitcoin. Tesla holds over $20 billion in cash reserves, making it less likely that they would need to use Bitcoin for collateral. This has left many wondering about the true reason behind the transfer.
Elon Musk Remains True to His Word
Elon Musk has consistently supported blockchain technology, and both SpaceX and Tesla still hold large amounts of Bitcoin, Ethereum, and Dogecoin. Muskโs social media platform, X, is also preparing to launch a payments feature, which will likely include digital assets, reinforcing his belief in the future of crypto.
Why Musk Is Unlikely to Sell
Despite the large-scale Bitcoin transfer, it seems unlikely Musk is planning to sell his crypto holdings. With Donald Trump recently promising to push the U.S. to hold Bitcoin in its reserves, thereโs a growing sense that institutional crypto investment could soon rise. Musk appears well-positioned to stay at the forefront of this trend.
While the move has sparked buzz, it remains to be seen whether SpaceXโs transfer will lead to a sale, loans, or something else entirely. What do you think?