German Government Missed Out on $2.3 Billion in Profit After Selling 49,858 Bitcoin (BTC)

The German government missed out on 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 counts as 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 performed several Bitcoin transactions in June and July 2024. During this time, the wallet sold 49,858 Bitcoin for $2.89 billion across multiple exchanges. However, Bitcoin’s price has increased by over 80%, massively boosting 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 sparked market concerns on June 19 after transferring 6,500 Bitcoin, valued at $425 million. The transactions unfolded without optimal timing or strategic execution, limiting the overall returns.

The German government utilized 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 several 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 continued on 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 for minimizing price disruption.