TLDR
- The German government sold nearly 50,000 Bitcoin in June and July 2024 at an average price of $57,900.
- Bitcoin’s value surged over 80 percent after the sale and is now trading above $104,700.
- The early sale resulted in a missed profit of more than $2.3 billion for the German government.
- Bitcoin was originally seized from the operators of the defunct piracy site Movie2k.
- The government’s selling strategy involved multiple exchanges and lacked market timing and optimization.
The German government missed over $2.3 billion in profit after selling nearly 50,000 Bitcoin (BTC) in mid-2024. Bitcoin, which averaged around $57,900, later surged past $104,000 by May 2025. This sale marked one of a state entity’s largest missed profit opportunities in recent crypto history.
German Government Sold Bitcoin Below Peak Market Value
The “German Government (BKA)” wallet conducted several Bitcoin transactions in June and July 2024. During this period, the wallet sold 49,858 Bitcoin for $2.89 billion across multiple exchanges. However, Bitcoin’s price has increased by over 80%, significantly raising its current value.
The German Government sold 49,858 BTC for $2.89B, at an average price of $57,900.
If they had held it, their BTC would now be worth $5.24B.
Opportunity cost: $2.35 Billion pic.twitter.com/XYlm7qBg98
— Arkham (@arkham) May 19, 2025
These coins were reportedly seized from Movie2k operators, a now-defunct piracy platform. The wallet first raised market concerns on June 19 after transferring 6,500 Bitcoin worth $425 million. The transactions occurred without optimized timing or strategic execution, limiting overall returns.
The German government used at least five exchanges, impacting market pricing during the selling phase. This activity created downward pressure and reduced the total revenue generated. Market participants noted that this irregular selling method caused increased volatility during the selling window.
Bitcoin Rose Sharply After Government Wallet was Emptied
After the wallet ran out of Bitcoin on July 13, 2024, BTC’s price rebounded above $60,000 on July 14. This price shift came after weeks of uncertainty driven by the wallet’s activity. The sudden stop in sales helped ease broader market sentiment.
According to CoinMarketCap, BTC trades above $104,700 at the time of writing. If the government had held its position, it would now own over $5.24 billion in Bitcoin. This reflects a missed gain of over $2.35 billion within less than one year.
The rapid price increase suggests that the high demand continued despite the earlier sell-offs. The market absorbed the sold Bitcoin and resumed an upward trajectory. Meanwhile, analysts pointed to the timing as the main factor behind the missed gains.
Market Reactions Point to Poor Execution Strategy
Arkham Intelligence tracked the sales and concluded that the transactions lacked coordination and a timing strategy. Founder Miguel Morel stated the government sought liquidity instead of market optimization. The use of multiple platforms showed a preference for speed over long-term gain.
This approach caused more price disturbance than the actual volume of Bitcoin sold. The market reacted sharply to the timing and style of the trades. Blockchain data revealed that the wallets offloaded BTC without regard to minimizing price disruption.
