The German government recently transferred over $175 million worth of Bitcoin (BTC) to several cryptocurrency exchanges including Coinbase, Kraken, and Bitstamp. It currently holds 40,359 BTC in marked addresses on-chain, totaling approximately $2.3 billion.
Joana Cotar, a member of the German Federal Parliament, strongly criticized this decision, attributing national-level sell-offs as a contributing factor to the ongoing market decline. She expressed concerns over the long-term destabilizing effects on the cryptocurrency market.
Cotar contrasted Germany’s approach unfavorably with the strategic reserve perspective held by the United States towards Bitcoin. She conveyed her worries to various German officials including Michael Kretschmer, Christian Lindner, and Olaf Scholz, urging a reconsideration of this strategy.
The sale of Bitcoin by the German government reportedly stemmed from an investigation into the illegal movie streaming website Movie2k.to, resulting in the seizure of about 50,000 BTC valued at over $3 billion.
According to blockchain analytics firm Arkham Information, the German government recently transferred 1,300 BTC (approximately $76 million) to exchanges like Kraken, Bitstamp, and Coinbase over the past two days. An additional 1,700 BTC (about $99 million) was moved to address 139Po, potentially for institutional services or over-the-counter trading deposits. Currently, the German government still holds 40,359 BTC in marked addresses, valued at around $2.3 billion.
The German government holds approximately $2.3 billion worth of Bitcoin.