German Government Sells $2.4 billion worth of Bitcoin to BlackRock, and Bitcoin price $80k?

Currently, the German government ( The State of Saxony) plans to sell approximately 39,300 BTC worth $2.4 billion to a US institutional Bitcoin ETF fund of BlackRock. Recently, the German state of Saxony transferred 10,700 BTC ($400M) to exchanges (Kraken, Bitstamp, Binance) and market makers. This is part of a larger seizure linked to piracy operations, raising concerns about potential selling pressure. The 50,000 BTC were seized in 2024 from operators of the illegal piracy site “Movie2k” (active until 2013). Recently, the German state of Saxony feels that the price of Bitcoin can go below $90K, due to which there is pressure on the German government from politicians, businesses, and foreign traders that Germany should sell the bitcoins seized at the current prices. The Remaining 32,800 BTC ($2.01B) will likely be sold incrementally by the end of 2025. In the future, the German government may become a bitcoin-free country and possibly impose new laws, taxation, and other trading rules in Germany for its citizens to trade or hold Bitcoin.

Why is Germany selling Bitcoin to the US, BlackRock, and Microstrategy via an OTC (Over-the-Counter) deal?

Most Countries, including the US, Germany, and China, sell seized Bitcoin (and other cryptocurrencies) for a combination of legal, practical, financial, and political reasons. Most countries require law enforcement to liquidate seized assets (cash, property, crypto) after legal proceedings end. Proceeds typically fund state budgets or victim compensation. So it has been reported that Germany has recently sold its Bitcoin worth $400 million on the open US exchange, which can be bought by Microstrategy or BlackRock in the future, because it has been reported that Microstrategy is buying Bitcoin at other prices. German law requires converting confiscated criminal assets into state cash reserves. Saxony confirmed gradual sales of its remaining BTC through 2026. In the current pressure of the European Union, Crypto Market crash, and Financial losses in Germany, the state of Saxony has sold its 10,000 Bitcoins to American crypto exchanges to regulate Bitcoin publicly and possibly sell the remaining $2 billion worth of Bitcoin at the lowest prices in 2026 bitcoin crash.

It was recently reported that Germany has been trying since last year and is conducting an auction in which bitcoins worth billions of rupees could be sold instantly, but no private OTC was available. But if Germany does not get a direct buy contract in the next six months, then it would also have to sell it on the exchange. Most of the Big crypto or Bitcoin deals processed through Crypto OTC trading refer to buying and selling cryptocurrencies directly between parties, rather than using conventional exchange platforms. When a country does not get a Crypto OTC trader and cannot provide cash, bond, or cheque, then the German government sells it on Crypto exchanges due to high market volatility.