Rare Physical Bitcoin Redeemed After 12 Years, Valued at $1.78 Million

A unique 25-bitcoin Casascius physical coin, produced between 2011 and 2013, was redeemed this week, with the 25 BTC—equivalent to approximately $1.78 million—transferred to a new wallet.

Details of the Redemption

The physical bitcoin, known as S1-COIN-25, had its tamper-evident hologram removed on Wednesday, allowing access to the bitcoin it contained. These Casascius coins, created by Mike Caldwell, are highly sought after by collectors not only for their face value but also for their numismatic worth when left intact.

Key Facts:

• The coin’s redemption marks a significant event as it was part of a broader trend of previously inactive bitcoin wallets, with another wallet from 2011 also moving 35 BTC after being dormant for 15 years.
• Casascius coins were minted by Caldwell in various denominations, including 0.5, 1, 5, 10, 25, 100, and 1,000 BTC. Each coin features a printed bitcoin address on the front, while the private key is hidden under a tamper-proof hologram on the reverse side.
• Redemption of the coin eliminates its collectible value, as holders can only access the bitcoin by peeling the hologram and importing the private key into a wallet.

Production of Casascius coins ceased in late 2013 after the U.S. Financial Crimes Enforcement Network indicated that Caldwell was operating as an unlicensed money transmitter. Unpeeled Casascius coins, however, continue to be valued in the collectibles market due to their dual nature as both currency and collectible items.

While many of the larger denomination coins remain intact, Caldwell minted fewer than 20 of the 1,000-BTC coins, with each now worth about $66 million in bitcoin. Although other physical bitcoin projects have emerged, Casascius coins remain the most popular among collectors.

Redeeming a Casascius coin is a significant decision with real financial implications, as intact coins typically fetch a premium over their face bitcoin value. The recent redemption was recorded in Bitcoin block 952,159 and coincides with unusual activity among dormant bitcoin holdings.