The movement of two legendary “physical Bitcoins” holding a combined value of over $120 million has attracted some attention on social media.
Former Mt. Gox CEO Mark Karpelès has revealed that he once handed out similar, albeit smaller, fortune-holding coins as casual employee bonuses.
Casascius coins, explained
On Sunday, on-chain sleuths flagged a massive transaction: two 1,000 BTC Casascius coins had moved on the blockchain after sitting dormant for more than 13 years.
These funds originated from “physical bitcoins.” These are tangible gold-plated bars or coins created in the early days of crypto that contain a private key hidden underneath a holographic sticker.
To spend the funds, the owner must physically peel off the tamper-evident hologram to reveal the key.
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Created by Mike Caldwell between 2011 and 2013, Casascius coins were an attempt to make Bitcoin tangible for face-to-face trading. They are solid brass, gold-plated, or silver rounds and bars.
Each coin features a “private key” on a card embedded inside the coin, covered by a tamper-resistant hologram.
Caldwell stopped minting them in November 2013 after FinCEN notified him that selling pre-funded coins qualified as money transmission.
The employee perk
Karpelès confirmed that while he didn’t hold the massive 1,000 BTC “gold bars.” He possessed a significant number of the smaller denominations during Mt. Gox’s peak.
“I had a bunch of 25 BTC and 1 BTC, yea. Gave these to employees as bonus,” Karpelès wrote.
When Casascius coins were minted (2011–2013), a 25 BTC coin would have been worth anywhere from $100 to $25,000.
Today, a single 25 BTC coin is worth approximately $1.5 million, not counting the massive numismatic premium collectors pay for an unpeeled, pristine physical coin.
It remains unknown how many former Mt. Gox staff members kept their physical coins unpeeled.