In the summer of 2024, the German government made a decision that has sparked controversy and scrutiny. The government sold approximately 50,000 Bitcoins, resulting in net proceeds of $2.88 billion. However, recent reports have revealed that this decision led to a missed profit of $1.7 billion.
Between June 19 and July 12, 2024, the Dresden Public Prosecutor’s Office sold about 49,858 BTC, bringing in a substantial $2.86 billion. These funds were earmarked for ongoing criminal proceedings related to the “movie2k” case in the Leipzig Regional Court. At the time of the sale, Bitcoin was priced at an average of $57,900 per coin.
However, it has come to light that German authorities had originally planned to sell the 50,000 BTC at a price of $64,000. If they had followed through with this plan, they could have made an additional $400 million. Fast forward to today, with Bitcoin now priced at $89,577 per coin, the missed opportunity becomes even more glaring, as the same 50,000 BTC would be worth over $4.47 billion.
The sale was conducted in accordance with legal requirements to prevent potential losses in value due to the lengthy duration of the criminal proceedings. Despite this, the missed profit underscores the volatile nature of Bitcoin prices and the risks associated with timing in the cryptocurrency market.
While the sale may have been legally necessary, it serves as a reminder of how quickly the cryptocurrency market can change and the importance of making well-timed decisions when handling large digital assets. The incident highlights the need for careful consideration and strategic planning when dealing with cryptocurrencies.
This missed opportunity has raised questions about the timing of the sale and the potential for greater profits if different decisions had been made. It also serves as a cautionary tale for other governments and institutions handling large amounts of digital assets in the ever-changing landscape of the cryptocurrency market.