Bitcoin's stability noted despite Mt. Gox's large-scale BTC movement.
Key Takeaways
- Mt. Gox moved 13,265 BTC, with most going to new cold storage.
- Bitcoin price remains stable above $59,000 despite the transaction.
Defunct cryptocurrency exchange Mt. Gox has transferred 13,265 Bitcoin worth $784 million, marking its first major on-chain activity since late July.
An address associated with Mt. Gox moved 12,000 BTC (valued at $709 million) to an empty wallet starting with “1PuQB”, according to blockchain analytics firm Arkham Intelligence. The remaining 1,265 BTC, worth approximately $75 million, was sent to an address labeled as a Mt. Gox cold wallet.
This significant movement has sparked speculation about potential Bitcoin distribution to creditors who have been awaiting reimbursement since the exchange’s collapse in 2014. However, Alex Thorn, head of research at Galaxy Digital, suggests the impact on markets may be limited.
“We now think that of the 13,265 BTC moved in this tx, only 1,265 ($74.5 million) is meant to distro, w/ 12,000 going to estate fresh cold storage so, very small,” Thorn said.
The Bitcoin price has remained relatively stable following the transactions, holding above $59,000 according data from CoinGecko data. This muted market reaction contrasts with previous instances of Mt. Gox-related selling pressure impacting BTC’s price, after it announced the beginning of distributions in June.
Mt. Gox’s last major Bitcoin movement occurred on July 30, when it transferred 47,229 BTC to three unknown wallets over a three-hour period. At the time, Arkham Intelligence suspected that 33,105 Bitcoin was sent to an address owned by crypto custodian BitGo, which is working with the Mt. Gox Trustee to return funds to creditors.
The exchange still holds a substantial 46,164 BTC worth roughly $2.7 billion. Interestingly, Mt. Gox creditors appear to be holding onto their reacquired Bitcoin rather than immediately selling.
Mt. Gox’s rehabilitation trustee announced in July 2024 that Bitcoin and Bitcoin Cash distributions would commence for approximately 127,000 creditors owed over $9.4 billion. The exchange’s collapse in 2014 was attributed to multiple undetected hacks resulting in the loss of over 850,000 BTC, now valued at over $51.9 billion.
While the recent movements signal progress in the long-awaited repayment process, the Mt. Gox saga continues to be relevant in crypto history, despite seeing its last few years as it winds down with the repayments. The exchange’s ability to move substantial amounts of Bitcoin without dramatically impacting and just barely budging the market shows the increasing maturity and liquidity of the crypto ecosystem.
