Two previously inactive Casascius coins — each containing 1,000 Bitcoin — were activated on Friday, releasing over $179 million that had been dormant for over 13 years.
Onchain data reveals that one of the Casascius coins was minted in October 2012, with Bitcoin priced at $11.69 at the time.
The other was minted in December 2011, when Bitcoin was valued at just $3.88, resulting in a theoretical return of approximately 2.3 million percent for that coin, excluding minting costs.
A Brief History of Casascius Coins
Casascius coins are physical metal collectibles created by Utah-based entrepreneur Mike Caldwell, minted between 2011 and 2013.
Caldwell transformed Bitcoin into tangible coins, making them highly sought after in the Bitcoin collectible market.
Each Casascius coin features a paper note embedded with a digital Bitcoin value and is covered by a tamper-evident hologram. The denominations range from 1, 5, 10, 25, 100, 500 to 1,000 BTC.
However, Caldwell halted his operations after a notification from FinCEN raised concerns about him potentially running an unlicensed money transmitter business.
How Casascius Coins Function
Only 16 of the 1,000 BTC bars and 6 of the 1,000 BTC coins were ever produced, according to some records.
The first individual to redeem the private key by removing the holographic sticker will obtain the full value of the coin; afterwards, the coin loses all Bitcoin value.
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Nevertheless, redeeming a Casascius coin for Bitcoin does not necessarily mean a large influx of Bitcoin will hit the market.
In July, a holder of a 100 Bitcoin Casascius coin, known as “John Galt,” explained to Cointelegraph that he transferred his assets from a physical coin to a hardware wallet for better accessibility, with no immediate intention to cash out.
“Having 100 BTC is life-changing for anyone. However, for me, it’s more about safety than a sudden windfall,” he remarked.
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