Mt. Gox Transfers $930M Bitcoin, BTC Drops 2.4%

On March 11, the defunct crypto exchange Mt. Gox executed a significant transfer of Bitcoin, valued at over $930 million. This move marks the second large Bitcoin transfer by Mt. Gox within a week, following an earlier transfer of 12,000 Bitcoin worth over $1 billion on March 6. The recent transfer involved 11,833 Bitcoin, with 11,501 Bitcoin ($905.1 million) sent to a new wallet and the remaining 332 Bitcoin ($26.1 million) transferred to a warm wallet. The transaction cost was minimal, totaling just $2.13.

The movement of these funds coincided with a temporary price drop in Bitcoin, which fell by 2.4% to $76,784 over a 30-minute period. However, Bitcoin quickly recovered to $79,275. The transfer of 332 Bitcoin to a warm wallet is speculated to be part of the ongoing efforts to facilitate creditor repayments. This speculation is based on the fact that $15 million from the previous transfer was sent to BitGo, one of the custodians involved in the repayment process.

Mt. Gox, once the largest Bitcoin exchange handling around 70-80% of Bitcoin trades between 2010 and 2014, collapsed due to a hack that resulted in the theft of up to 850,000 Bitcoin from its Tokyo-based platform. Since June 2024, Mt. Gox has been offloading Bitcoin worth around $9.2 billion. As of the recent transfer, Mt. Gox's main wallets hold 24,411 Bitcoin, valued at $1.94 billion. The exchange had initially planned to repay its creditors by October 2024 but extended the deadline to October 31, 2025, to ensure a comprehensive repayment process.

This series of transfers is part of Mt. Gox's efforts to fully repay its creditors by the extended deadline of October 31, 2025. The recent movements highlight the ongoing liquidation of Bitcoin holdings by Mt. Gox, which has been systematically offloading its assets to meet its repayment obligations. The minimal transaction cost of $2.13 underscores the efficiency