Galaxy Digital Bitcoin executed one of the largest single transactions in Bitcoin history – offloading 80,000 BTC (worth $9 billion) from wallets tied to the defunct MyBitcoin platform.
The July 25 sale, which Galaxy Digital confirmed was part of a client’s estate planning strategy, has reignited debates about Bitcoin’s early history while raising questions about market impact, as blockchain sleuths trace the coins back to the controversial 2011 exchange collapse that once threatened to derail crypto’s infancy.
Galaxy Digital Bitcoin offloads shook analysts when it became clear that the coins originated from dormant wallets linked to the now-defunct MyBitcoin platform—an early Bitcoin wallet service that abruptly shut down in 2011 following a high-profile hack.
Mysterious wallets and a monumental move
According to Galaxy Digital, the massive Bitcoin sale was facilitated on behalf of a long-time client.
The firm confirmed that the coins had been held since Bitcoin’s earliest days and that the sale was part of the client’s estate planning strategy.
“We were executing a long-term liquidity strategy for a legacy client,” a Galaxy spokesperson told Decrypt. “The timing aligned with their broader financial objectives.”
A message was embedded via the op_return field, sending 1 satoshi—Bitcoin’s smallest unit—to each recipient address involved in the 80,000 BTC transaction. The symbolic gesture drew widespread attention.
“If the press release isn’t on-chain, did it even really happen?” quipped pseudonymous Bitcoin analyst Mononaunt. “This transaction is funded with 80,000 sats from a Galaxy Digital address and pays 1 sat of dust to each recipient.”
Galaxy Digital’s Embedded Message on Bitcoin Network. Source: Mempool
Tracing the coins: MyBitcoin ghosts resurfaces
Following the announcement, blockchain investigators were quick to track the origin of the coins.
The findings pointed to early-era wallets connected to MyBitcoin—a custodial service infamous for losing user funds in 2011 after a supposed hack. At the time, many believed those coins were gone forever.
CryptoQuant CEO Ki Young Ju added fuel to the fire, suggesting the dormant wallets had been untouched since April 2011.
“It likely belongs to the hacker or the anonymous founder known as Tom Williams,” Ju posted on X.
“It seems Galaxy Digital bought the #Bitcoin from them, but I’m not sure if they did any forensics.”
The lack of clarity around the seller’s identity has sparked a wave of speculation. Was this a white-hat recovery? Or did the long arm of crypto finally help a shadowy figure cash out?
Market shocks or markets maturity?
While the size of the sell-off raised eyebrows, the market’s resilience may have surprised many.
Within hours of the Galaxy Digital Bitcoin offloads, Bitcoin dipped below $115,000 but quickly rebounded. As of press time, BTC trades just above $117,000.
Bloomberg ETF analyst Eric Balchunas questioned the wisdom of unloading such a massive amount all at once.
“Have they lost faith that badly that they want to take that much money out that quickly?” Balchunas asked. “Unless they plan to buy the LA Lakers in cash, it seems odd—even concerning.”
Others pointed to potential KYC safeguards. Eliezer Ndinga, Research Director at 21Shares, defended Galaxy Digital’s compliance protocols.
“It’s a behavior akin to a hacker,” Ndinga said, “but if that amount was processed by Galaxy, I assume they had a stringent KYC process to enable the transaction to go through.”
Symbolic sat, strategy play
The 1 satoshi transactions embedded in the on-chain message weren’t just symbolism—they were a statement.
In an industry where transparency is increasingly demanded, Galaxy Digital Bitcoin offloads may have set a new standard for how major moves are declared and documented.
“It’s poetic in a way,” said Bitcoin researcher Lisa Neimark. “The blockchain isn’t just a ledger—it’s also a living record of history. This sale has now become part of that canon.”
As speculation swirls, market participants continue to dissect the deeper meaning of the transaction.
Davidson Okechukwu is a passionate crypto journalist/writer and Web3 enthusiast, focusing on blockchain innovation, deFI, NFT ecosystems, and the societal impact of decentralized systems.
His engaging style bridges the gap between technology and everyday understanding with a degree in Computer Science and various professional certifications from prestigious institutions.
With over four years of experience in the crypto and DeFi space, Davidson combines his technical knowledge with a keen understanding of market dynamics.
In addition to his work in cryptocurrency, he is a dedicated realtor and web management professional.
