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How Mt.Gox’s looming $9 billion payout could impact Bitcoin

By:
on Apr 23, 2024
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  • Mt.Gox is preparing to offload 142,000 BTC in the next weeks, according to K33 Research.
  • Bitcoin could suffer a correction as the exchange’s BTC distribution poses an overhang to the asset.
  • Creditors have reported their Bitcoin claims being updated recently in the filing system.

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Mt.Gox is likely to distribute the 142,000 Bitcoin that it owes to creditors, in the coming weeks. The development is making headlines as an analyst highlights the possibility of Bitcoin price rally grinding to a halt as the defunct exchange offloads BTC. 

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Bitcoin could face headwinds in the coming weeks

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Creditors have seen their Bitcoin and Bitcoin Cash claims being updated in the Mt.Gox filing system. A user shared an image depicting the same on the MtGoxInsolvency subreddit. In a K33 research report, Anders Helseth and Vetle Lunde wrote, “Mt. Gox coins could become a relevant negative price contributor in the next weeks.”

The exchange has been defunct for nearly ten years. While Mt.Gox was founded in 2010, it suffered a hack in 2014, a total of 850,000 Bitcoin was lost to the exploit. Creditors will receive 143,000 Bitcoin Cash, in addition to Bitcoin, and fiat currency, by the 2024 deadline. 

The distribution of over $9 billion in Bitcoin is likely to negatively influence the asset’s price. Typically, an increase in Bitcoins in circulation could increase the selling pressure and drive BTC price lower. 

Creditor claims updated 

While Bitcoin has wiped its slate clean of last week’s correction, Mt.Gox’s distribution could push BTC lower. In 2023, trustees of the defunct exchange had set an October 31, 2024 deadline to reimburse creditors who suffered damages in the hack. It is likely that payments come earlier than expected, as claims updated in mid-March 2023 were received by creditors, according to a Cointelegraph report. 

The Redditor who claims to have received Bitcoin said that the table was updated on March 15, April 8 and the assets arrived on April 18.  

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