Analysts at blockchain firm Arkham Intelligence say the German government missed out on more than $2 billion in potential profits after selling off nearly 50,000 Bitcoin tokens in mid-2024.
The German government’s BKA cryptocurrency wallet liquidated 49,858 BTC between June and July last year at an average price of $57,900, with a total value of around $2.9 billion, now worth around $104,700 each, worth $5.24 billion.
The sale of Bitcoin by German authorities, seized from piracy platform Movie2K, has generated an estimated $2.88 billion based on an average price of $57,600 per coin.
The first major transfer involved 6,500 BTC worth around $425 million on June 19, 2024, sparking speculation about the potential for a large-scale sale.
Movie2K is a platform known for streaming pirated content and has been under investigation for several years. According to authorities, the site's operators used advertising and subscription fees to buy large amounts of Bitcoin.
In January, nearly 50,000 BTC worth around 1.96 billion euros was transferred to German authorities by individuals believed to be involved in the platform's operations.
Bitcoin prices fell sharply during the period of the massive sale, but began to show signs of recovery after German government wallets were reportedly sold out.
According to the Dresden Public Prosecutor's Office, emergency sales are legally permitted if there is a risk of a loss of more than 10% of the value before the criminal proceedings are concluded.
The massive sale was a major factor in the collapse of Bitcoin prices in June, with the cryptocurrency's value falling by 9.8% from around $67,000 to $60,000.
The downward trend continued in July, when prices briefly fell below $55,000, before showing signs of recovering.
