An upcoming US Government Services Administration auction will start Bitcoin bidding at $27,000, some 56% under the current price.
GSA Auctions has five Bitcoin lots totaling 4.94BTC, each selling below Bitcoin’s current price of $61,232. While 4.94 BTC is worth around $300,000, the collective starting bids make up just $134,399.
The auction, promoted by GSA Auctions as ‘Fall For Cryptocurrency’, will begin on October 26 at 5 PM CT (11 PM BST). They will run until October 28, ending between 5 PM-5:50 PM CT.
Bitcoin Listed At Low Price
Bitcoin was last priced at $27,000 on December 27, 2020. It has since reached an All-Time High of $66,930.
While the GSA auction for 1 BTC starts at $27,000, there is no guarantee that it will sell for a cut price. In March 2021, one bidder purchased 0.7501 BTC for $53,104 - some 20% above the market value at that time.
The GSA has held several other cryptocurrency auctions in 2021, bringing in over $1m from Bitcoin and Litecoin (LTC) sales.
It is unclear where exactly the Bitcoin up for auction originally came from, and how it came into the government’s hands. The US Government gives three reasons for selling off assets: selling a criminal’s seized or forfeited property, selling items forfeited after violating Treasury laws (such as not paying taxes), and selling items the government no longer needs.
Selling off seized cryptocurrency is not a new concept for the US Government, however. In June 2014, the FBI sold 29,657 BTC seized from Silk Road founder Ross Ulbricht. Worth just over $18m at the time, this is now worth $1.7bn.
Once the latest auction ends, GSA will send the Bitcoin directly to the successful bidders’ wallets.