What is the reason the German government sold its Bitcoin?
The German government sold its Bitcoin reserves, around 50,000 BTC, for several key reasons related to regulation and the risk of price volatility. The Bitcoin was initially seized from the movie piracy website "movie2k." According to German law, seized digital assets must be sold immediately, especially when there is a threat of significant loss of value due to the high price fluctuations of Bitcoin. Therefore, the German government was required to conduct an "emergency sale" in accordance with Article 111p of the Code of Criminal Procedure.
The sale process was carried out in several small stages over approximately three weeks to minimize the potential market impact if sold all at once. The proceeds from the sale, amounting to around €2.63 billion, were used to secure interim funding for ongoing legal processes related to the "movie2k" case.
