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The German government has been selling it stash of Bitcoin. Mt. Gox’s upcoming repayments to creditors may not have a huge impact on Bitcoin, as many fear. Meanwhile, Riot Platforms has dropped its proposed acquisition of Canadian Bitcoin miner Bitfarms.
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German gov’t offloads 900 Bitcoin, 400 BTC sent to Coinbase and Kraken
A “German Government (BKA)” labeled cryptocurrency wallet has sold over $54 million worth of Bitcoin.
The German government’s wallet sold 900 Bitcoin BTC $61,959 in three individual transactions on June 25.
The first 200 BTC transaction was sent to the Coinbase exchange, while the second 200 BTC transfer was sent to the Kraken exchange.
However, a third transaction, worth 500 BTC, or over $30 million, was sent to wallet “139Po,” which remains unknown, according to onchain intelligence provider Arkham Intelligence.
While wallet “139Po” remains unknown, it is not the first time the German government has interacted with it. The German government previously sent 800 BTC to the address on June 20 and another 500 BTC on June 19, just six days ago.
The German government-labeled wallet first sparked suspicions of potential Bitcoin selling on June 19, when it executed a 6,500 BTC transfer worth over $425 million.
Besides the transfer to the untagged wallets, the majority of the Bitcoin is transferred to centralized exchanges, which signals that the government is potentially looking to sell Bitcoin.
Prior to the transfer, the wallet held nearly 50,000 BTC since February 2024. The funds are believed to have been seized from the pirated movie website operator Movie2k.
Mt. Gox repayments won’t be as bad for Bitcoin as you think
Mt. Gox’s scheduled repayment of $8.5 billion worth of Bitcoin
BTC $61,959 to creditors next month may not cause as much mayhem for the price of Bitcoin as many expect, say analysts.
IG Markets analyst Tony Sycamore told Cointelegraph that despite the potential upcoming flood of Bitcoin onto the market, much of the supposed Mt. Gox sell pressure was already priced into the current market conditions.
“The repayments are happening against the backdrop of deteriorating market sentiment, technical selling, and outflows from the Bitcoin ETFs,” said Sycamore, adding that much of the speculative “hot money” in crypto had left to chase “greener pastures” in mega-stocks like Nvidia and Apple in the equities market.
“The repayments have been coming for a long time.”
In a June 25 post to X, Galaxy Digital’s head of research Alex Thorn estimated that only 65,000 of the 141,000 total Bitcoin stands to actually hit the market in full — significantly reducing much of the expected selling activity.
Additionally, Thorn explained that there were several reasons to believe that individual Mt. Gox creditors would be more “diamond-handed” than the market expects.
Riot seeks to replace three Bitfarms board members
After a failed attempt to acquire Bitfarms, Riot Platforms has announced that it plans to replace three members of the Canadian miner’s board of directors.
In a June 24 notice, Riot Platforms revealed that it owned a 14.9% stake in Bitfarms. The disclosure came after Bitfarms announced a shareholder rights plan to prevent Riot from acquiring more than 15% of its shares. Rather than continue buying Bitfarm stock, Riot said it would opt to replace three of the company’s board members and “remove any additional director.”
“[It] is clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible,” Riot said in its notice. “Riot has informed the Bitfarms Board that it has formally withdrawn its previous proposal to acquire all Bitfarms common shares at a price of US$2.30 per share and stands ready to engage and negotiate with a reconstituted Bitfarms Board to pursue a mutually beneficial combination of Bitfarms and Riot.”
Riot made Bitfarms a primary acquisition target earlier this year and began moving in on the company in May. At the time, Riot offered to pay $950 million before the Canadian miner capped its stock holdings at 15%.
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