Mt. Gox Creditors Hold Onto Bitcoin Despite Large Distribution

Nearly half of the Bitcoin owed to Mt. Gox creditors has been distributed, yet many are still holding onto their assets even after a decade of waiting.

As of now, 59,000 BTC—over 41% of the total 141,686 BTC—has been returned to Mt. Gox’s creditors. Despite the distribution totaling nearly $4 billion, creditors have not significantly sold off their Bitcoin, according to a recent report by Glassnode.

The decision to receive Bitcoin instead of fiat currency, a new development in Japanese bankruptcy proceedings, means that only a small portion of these coins might be sold on the market. The total amount originally owed was over $9.4 billion to around 127,000 creditors, raising concerns about potential market impact.

Kraken finalized the distribution of Mt. Gox Bitcoin to creditors on July 24. Mt. Gox, once a leading Bitcoin exchange in Japan, collapsed in 2014 after a massive hack that resulted in the loss of 850,000 BTC.

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Current trading data from exchanges shows little increase in selling pressure, suggesting creditors are holding onto their Bitcoin rather than liquidating it.

This lack of selling is surprising given Bitcoin’s substantial price increase of over 8,500% since the exchange’s collapse. The data indicates a shift in investor behavior from selling to “hodling,” or holding assets long-term.

Alexander Stefanov