What is Elon Musk's favorite cryptocurrency? Tesla's Bitcoin is traded in large volume.

Elon Musk continues to be a central figure in corporate cryptocurrency movements. Recently, wallets linked to Tesla, the electric vehicle manufacturer founded by Musk, moved most of their Bitcoin holdings to addresses without public identification, reigniting debates about Musk’s strategy with digital assets.

According to data from the analysis platform Arkham Intelligence, the automaker’s wallets moved over 11,500 Bitcoin in the operation, equivalent to approximately $760 million at the current price of $78.72K. After the transfer, Bitcoin balances in Tesla wallets dropped to virtually negligible levels.

Tesla and its Bitcoin portfolio: from purchase to current movement

Tesla’s history with Bitcoin began in February 2021, when the company invested $1.5 billion in the digital asset. At its peak, holdings reached $2.5 billion. However, in 2022, the company sold 75% of its positions at a loss, significantly reducing its exposure to the cryptocurrency market.

The recent transfer to anonymous wallets raises questions about the company’s next steps. With this movement, Tesla remains one of the leading corporate holders of Bitcoin among publicly traded companies, ranking behind only MicroStrategy, MARA Holdings, and Riot Platforms globally.

Elon Musk’s role in the cryptocurrency strategy

While Elon Musk has built a significant position in Bitcoin through his companies, his personal preference leans toward Dogecoin. In recent statements, the entrepreneur indicated that he believes “there is merit in Bitcoin and perhaps other cryptocurrencies,” but made clear his greater affinity for Dogecoin, a coin that started as a joke.

SpaceX, another Musk company, also holds Bitcoin in its financial records. This dichotomy between corporate interest in Bitcoin and Musk’s personal preference for Dogecoin reflects the complexities of investment decisions in the digital asset sector.

What to expect from the next moves

Transferring Bitcoin to anonymous wallets does not necessarily mean an immediate sale. These movements are often part of broader portfolio management strategies. Even with the reduction of positions in 2022, Tesla remains a relevant name in the Bitcoin ecosystem, signaling that the relationship between Elon Musk and cryptocurrencies continues to evolve as the market develops.