The German government missed out on $1.6 billion by selling its bitcoin early
2024-11-12

The German government missed out on up to $1.6 billion by selling its bitcoin four months ago, just before a big rally spurred on by Donald Trump’s victory in the United States presidential election.
In July, the German government sold 50,000 bitcoin for $2.88 billion as part of the plan to offload bitcoin seized from the now-defunct film piracy website Movie2K. The average price of the sale was $57,600. 
Over the following months, the price of bitcoin rose back to its former all-time high before breaking through it after the U.S. election — rising nearly $10,000 in a single day on Nov. 11 — the largest single-day rise in its history. As a result, the government’s bitcoin would now be worth as much as $4.5 billion, a 56% increase.
US government misses out on $16.6 billion
The German government isn’t the only one that has missed out on potential gains by offloading bitcoin at the earliest opportunity. The U.S. government has sold varying amounts of bitcoin in 11 auctions over the last decade, according to Case CSO Jameson Lopp’s U.S. government sales tracker. The tracker shows that the U.S. government has sold 195,091 bitcoin over the years, netting a total of $366.5 million. However, at current prices, that’s just shy of $17 billion — resulting in an opportunity cost of $16.6 billion.
However, Trump may have a different strategy once he becomes President. In July, he said he would stop the U.S. from selling seized bitcoin, electing to hold onto it instead. He outlined that this would be the “core of the strategic national bitcoin stockpile.”
A few days later, Wyoming Republican Sen. Cynthia Lummis proposed a draft bill for the U.S. government to buy 1 million bitcoin — currently worth $88 billion. States would also be able to buy bitcoin if they wished, the bill outlined.
"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," Lummis said. 
Lummis’ plan could go some way to offsetting the amount of value the U.S. has missed out on by selling its bitcoin early. But following Trump’s victory, acquiring that amount of bitcoin will be considerably more expensive.
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