One year ago, Germany sold off 50,000 bitcoins, completely liquidating its stockpile. In the intervening time, the price of BTC doubled, and a similar today would’ve netted more than $6.64 billion.
This example could provide a useful cautionary tale for leaders around the globe. Even if a government is determined to liquidate its holdings, a few delays could’ve brought Germany much larger returns.
Germany Lost Out On Billions
From time to time, various world governments sometimes find themselves holding large quantities of Bitcoin.
Generally, this takes place after seizing assets from criminals, but other methods are also present. Last year, Germany seized 50,000 bitcoins in an anti-piracy bust, but made the controversial decision to sell them all in July 2024.
German Government’s Bitcoin Portfolio In 2024. Source: Arkham
Almost exactly one year later, this decision is looking extremely unfortunate. Germany sold this Bitcoin for $3.13 billion, but the asset’s price has gone off the charts since. Compared to last July, BTC actually doubled.
If the nation had 50,000 BTC to sell today, this would net over $6.64 billion. Instead, its wallet only holds 0.0069 BTC, which was accumulated from anonymous users donating minuscule quantities.
The sale looks like an even more unforced error because Germany today is not particularly anti-crypto. The nation currently issues more MiCA licenses than any other EU member, signifying an active local industry.
Nonetheless, the nation bungled a huge windfall. So, what lessons can the world learn from this?
On the whole, 2024 was a bad year for governments divesting from crypto. Several nations, like El Salvador and Bhutan, deliberately accumulated Bitcoin, while Germany tried to get rid of it.
Under President Biden, the United States also began liquidating its holdings. Between these two nations and Ukraine, which also performed a complete liquidation, state-owned reserves dropped by 12%.
However, even Biden’s partial liquidation proved influential, as it motivated President Trump’s push for a Bitcoin Reserve. The other two main national holders, China and the UK, did not acquire or dispose of any assets last year.
Although these nations don’t have a formal reserve established, their custodied assets have nonetheless become substantially more valuable.
All that is to say, world governments should consider Germany’s decision if they seize huge quantities of Bitcoin. Even if a political establishment is determined to liquidate, it may be prudent to postpone this as long as possible.
If the German government had followed the most common advice by every Bitcoin advocate, HODL, its economy could have netted billions and potentially more in the future.