Key Takeaways
- The German government sold 50,000 BTC for $2.88B just before a major price rally, missing out on $1.6B in potential gains.
- The US government has also sold large amounts of BTC in the past, with an opportunity cost of $16.6B at current market prices.
- Proposed legislation by Senator Cynthia Lummis aims to create a strategic bitcoin reserve for the US government, a chance at making up for past missed gains.
The German Government's $1.6 Billion Missed Opportunity
In July 2024, the German government sold 50,000 BTC for $2.88B, just before a significant rally in bitcoin prices.
The sale was part of the German government's effort to liquidate BTC seized from the defunct Movie2K piracy site.
The average price per BTC sold was $57,600, significantly lower than its current value.
By November 2024, the value of the 50,000 BTC had risen by 56%, making them worth as much as $4.5B.
This price surge came after the US presidential election, driven by factors including Donald Trump's victory. As a result, the German government missed out on up to $1.6B in additional value.
The U.S. Government's Bitcoin Sales and Missed Gains
The US government has sold 195,091 BTC over the last decade, earning just $366.5M in total.
At current BTC prices, the US government’s sales would be worth nearly $17B.
The US government’s approach to BTC sales spans 11 separate auctions over the years.
Despite the massive potential gains, the US government continues to offload seized BTC at early stages.
Future US Bitcoin Strategy and Legislative Proposals
Donald Trump has expressed intentions to stop selling seized BTC and instead hold onto it as part of a national stockpile.
Senator Cynthia Lummis has proposed a bill to purchase 1 million BTC for $88B, aiming to create a national BTC reserve.
The bill also allows states to purchase BTC, further expanding the scope of the reserve.
