Bulgaria & Germany's Bitcoin Blunder

A $25 Billion Missed Opportunity

Back in 2018, Bulgaria reportedly liquidated 213,500 BTC seized in a major customs fraud operation known as Operation SELC. At the time, Bitcoin’s price floated between $10,000 and $17,000, and selling the crypto haul seemed like the fiscally responsible move. Local reports suggest the government netted around $3.5 billion. Fast forward to mid-2025, and with Bitcoin now over $117,000, those same coins would be worth more than $25 billion—more than the country’s entire national debt of approximately $24 billion.

Although Bulgaria’s government has never confirmed the sale, the episode is now etched into crypto folklore as a glaring missed opportunity. The country, once rumored to be among the largest sovereign Bitcoin holders, is now widely referenced as a case study in selling too soon.

"Bitcoin Could Solve Most Public Debt" — CZ

The conversation reignited after a viral post on X compared Bulgaria’s lost Bitcoin billions to its current debt burden. Binance founder Changpeng Zhao (CZ) jumped into the discourse, writing:

His remark wasn't just a flex. It reflects a rising thesis among crypto believers: that Bitcoin, when strategically held, could serve as a sovereign hedge against debt and inflation, especially for nations wrestling with fragile fiat currencies or long-term liabilities.

This view is gaining traction, even among institutional players. VanEck recently modeled a scenario where the U.S. Treasury adds Bitcoin to its reserves alongside gold. Their projections suggest that even a modest allocation could offset future fiscal obligations—if adopted early.

Germany’s Turn: Same Script, Different Timing

Germany has now joined the hall of cautionary tales. In recent weeks, the Bundeskriminalamt (BKA) sold a portion of the country’s Bitcoin reserves, stirring market volatility and backlash from the crypto community. While the scale wasn't as massive as Bulgaria's, the timing of Germany’s sell-off has drawn criticism, especially as Bitcoin continues to rally amid growing institutional interest and favorable regulatory momentum in the U.S.

In contrast to El Salvador, which is doubling down on its Bitcoin treasury strategy and launching Bitcoin-backed bonds, European countries appear to be stuck in a legacy risk-averse mindset. Critics say that a hybrid strategy—selling part, holding part—could have preserved upside while managing volatility.

Strategic Reserve or Strategic Mistake?

Had Bulgaria retained just 10% to 20% of its stash, it would now hold between $2.5 billion and $5 billion in strategic reserves. Analysts argue this could have been used for currency stabilization, debt restructuring, or even infrastructure investment—transforming the nation’s economic trajectory.

Instead, what was once seen as a prudent decision is now a masterclass in lost potential. In the world of volatile but appreciating digital assets, playing it safe may come at the highest cost of all.

From Missed Windfalls to Myth

Whether Bulgaria’s liquidation is urban legend or government fact, it has become a symbolic episode that haunts policymakers and delights crypto advocates. It’s a what-could-have-been story that reminds us: in the age of digital assets, risk isn't just in holding—it's also in letting go too soon.