Germany’s federal government missed out on a staggering $2.3 billion in profit after offloading nearly 50,000 Bitcoin during mid-2024. According to blockchain analytics firm Arkham, the Bitcoin was sold at an average price of $57,900 per coin across multiple transactions in June and July. At today’s market value of over $104,700 per Bitcoin, those holdings would now be worth around $5.24 billion.

The wallet responsible for the sales, labeled as “German Government (BKA),” had raised red flags earlier on June 19, 2024, with a notable 6,500 BTC transfer worth more than $425 million. The total stash of approximately 49,858 BTC is believed to have originated from a seizure related to Movie2k, a now-defunct illegal movie streaming platform.

Critics say the government rushed to liquidate the crypto without proper execution strategy. Arkham’s founder Miguel Morel criticized the approach, pointing out the fragmented and aggressive selling across multiple exchanges. He noted this strategy appeared focused on maximizing immediate liquidity rather than optimizing returns, hinting at poor planning behind the sell-off.

The mass liquidation reportedly caused uncertainty among investors, adding downward pressure on Bitcoin’s price at the time. However, Bitcoin rebounded above $60,000 shortly after the government wallet was drained, signaling renewed market confidence.

The incident has sparked fresh debate over government involvement in crypto markets, with many questioning why the state didn’t hold for better returns. Germany’s early sale stands as a cautionary tale in the world of digital assets—highlighting just how costly bad timing can be in crypto investing.