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Riot Blockchain wins huge in U.S. Marshals' Auction- gets claim for 500 Bitcoins

Jan 24, 2018 Posted /  22370 Views

Riot Blockchain wins huge in U.S. Marshals' Auction- gets claim for 500 Bitcoins

The latest round of auctions on Monday by the U.S. Marshals Service witnessed an astounding run for Bitcoin. Riot Blockchain Inc., a company, which invests in cryptocurrency and blockchain startups, won about 500 Bitcoins in the auction for the property seized by the agency.  

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The company bid on many more bitcoins in the auction of more than 3,814 but was outbid. The company’s Chief Executive Officer John O’Rourke in a telephonic interview to Bloomberg gave the details about the auction and Riot’s performance. The company seized the Bitcoins in accordance with the market price at the time of auction. The closing price for Bitcoin on Monday was $10,354 and it worked out to be approximately $5.2 million. O’Rourke remarked in the interview

“I believe we’ll be heading north of $50,000 market price within the next 12 to 18 months,”

He further added

“Our strategy at Riot is to accumulate Bitcoin and to provide our investor's as much direct exposure as we can, hence we decided to participate in the auction.”

The auction, which was conducted by the U.S. Department of Justice, seemed to be a quite successful one as it attracted 62 registered bidders and received 111 bids. The Marshals Service disclosed the details on Tuesday in a statement. However, the agency did not reveal the names of auction winners or the total amount raised.

Nonetheless, this was a unique opportunity for the investors to and contributors to buy a huge amount of Bitcoins apart from online exchanges. The exchanges take up the profit and sometimes there is market manipulation of prices, this auction allowed for large purchases without being manipulated by the price. The last such auction was conducted in August 2016, when the agency offered 2,700 bitcoins which were forfeited form around 12 cases.

The massive count of bitcoins even auctioned by the agency was 50,000 in December 2014. Back then the cost of bitcoin was hovering around $373 and the entire load of bitcoins amounted to less than $19 million. However, the same amount is a rare sight for many of the bitcoin enthusiasts as the price has escalated a lot despite recent dips.

At the time of 2014 auction, a well-known venture capitalist and cryptocurrency enthusiast Tim Draper was the solitary winner of 30,000 bitcoins. The popular investor had announced earlier this month that he might participate in the auction. Even, SecondMarket, which is currently joined with Nasdaq, won a large hoard of Bitcoins in an earlier auction as well.

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