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US Government Auctioned 0.7501 Bitcoins at a 21% Premium

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The US government’s General Service Administration successfully auctioned 0.7501 bitcoins. While the percentage of BTC sold is not impressive, it is interesting that due to a large number of bidders, the buyer paid a 21% premium.

The GSA is a government agency that typically auctions excess vehicles or office supplies. However, according to the Washington Post, it has decided to expand its investment portfolio by allowing citizens to bid on Bitcoin.

The two-day auction of 0.7501 Bitcoin started on Monday and ended on Wednesday. After the event, the highest bidder won with an offer of $53,104. Around that time, BTC’s transaction price was around $55,400. This meant the winner had to buy through the government to pay the 21% premium.

In addition to Bitcoin, the GSA also auctioned aircraft engines, five barrels of 2,750 pounds of used ammunition cartridges, and a 2008 Ford Escape.

It is worth noting that the US government has also sold Bitcoin in the past. However, they employed the services of the United States Marshal Force (USMS). Last year, USMS sold 4,041 bitcoins (valued at around $40 million at the time).

France Auctions 611 Bitcoins

Earlier this week, the French government auctioned a significant portion of the 611 bitcoins (valued at around $34 million) that was seized from hackers in 2019. The French Seized and Confiscated Asset Recovery and Management Division split the auction into two batches – 437 lots of 0.11 to two BTC and 41 batches of five to 20 bitcoins.

Yves Benaim, the founder of Swiss cryptocurrency platform 2B4CH, said the government believes asset prices will fall in the next few months, which is why the sale happened this week.

“Technically, the French ministry is allowed to sell something that has been seized if they think the value might go down. It’s interesting that they are selling it now, betting that the price will go down, that it was just a bubble.”

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