The German Government Sold Its Bitcoin—Here's How Much It Missed Out On

The German government may have missed a substantial financial gain, estimated at $1.6 billion, due to the timing of its Bitcoin BTC/USD sales.

What Happened: In July, Germany sold 50,000 bitcoin, seized from the defunct piracy site Movie2K, for $2.88 billion.

This sale was executed at an average price of $57,600 per Bitcoin.

However, Bitcoin’s price has since surged, with significant momentum added by Donald Trump's U.S. presidential election victory, causing the cryptocurrency to reach new all-time highs.

Following the election, Bitcoin saw a historic single-day price increase of nearly $10,000 on Nov. 11.

Today, the value of the Bitcoin previously held by Germany would be worth approximately $4.5 billion—a 56% gain, highlighting the financial impact of the government’s early sale, The Block reported.

The German government is not alone in facing an opportunity cost related to Bitcoin sales.

The U.S. government has also auctioned off substantial amounts of Bitcoin, forfeiting potentially massive gains.

According to Case CSO Jameson Lopp's tracker, the U.S. government has sold a total of 195,091 Bitcoin across 11 auctions over the past decade, bringing in about $366.5 million.

Also Read: Bitcoin Nears $90,000—How High Can The Apex Crypto Go?

However, at current market prices, those holdings would be worth close to $17 billion, resulting in an opportunity cost of $16.6 billion.

The trajectory of U.S. government-held Bitcoin may soon change, as Trump, in a July statement, expressed plans to halt government sales of seized Bitcoin.

He announced an intention to retain Bitcoin, creating a "strategic national Bitcoin stockpile." This approach, according to Trump, would leverage Bitcoin as part of the nation's financial strategy.

Supporting this stance, Wyoming Senator Cynthia Lummis recently introduced draft legislation proposing a government acquisition of 1 million Bitcoin, valued at around $88 billion at current rates.

The bill suggests that state governments would also have the option to invest in Bitcoin if they choose.

Lummis emphasized the potential strategic benefits of this reserve, stating, "Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation's standing as the global financial leader for decades to come."

While Lummis' proposal could mitigate the U.S. government’s missed profits from prior sales, acquiring Bitcoin after its post-election surge will come at a much higher price.

What’s Next: With the digital currency gaining further traction in the financial world, the topic will likely draw attention at Benzinga's Future of Digital Assets event on Nov. 19, where discussions will focus on the role of Bitcoin and digital assets in national and global finance.

Read Next:

• Polymarket Bettors Say 60% Likelihood Bitcoin Crosses $100K This Year

Image created using artificial intelligence with Midjourney.