A Spanish public research institute is preparing to sell nearly $10 million worth of Bitcoin that it acquired more than a decade ago for a mere $10,000.
The Institute of Technology and Renewable Energies (ITER), located in Tenerife and overseen by the Tenerife Island Council, initially purchased 97 Bitcoin in 2012. This acquisition was part of a research project focused on exploring blockchain technology.
At the time of purchase, Bitcoin’s value was approximately $100 per coin. Currently, with BTC trading above $103,000, this same quantity of Bitcoin is valued at over $10 million.
Plans to Sell the Bitcoin Holdings
The Tenerife Island Council is reportedly in the final stages of arranging the sale of these Bitcoin holdings, according to information from the Spanish newspaper El Día.
Juan José Martínez, the island’s innovation councillor, stated that the council is working with a Spanish financial institution. This institution is authorized by both the Bank of Spain and the National Securities Market Commission (CNMV) to facilitate the transaction.
Martínez did acknowledge that the sale process has encountered complications. These difficulties stem from the reluctance of many European banks to engage in Bitcoin transactions, largely due to ongoing regulatory uncertainty and the inherent price volatility of the cryptocurrency.
Proceeds to Fund Quantum Research
Martínez further explained that the sale of the Bitcoin is anticipated to be completed within the next few months. The funds generated from this sale will be reinvested into ITER’s various research initiatives, with a specific emphasis on advancements in quantum technologies.
He emphasized that the initial acquisition of Bitcoin in 2012 was never intended as an investment strategy. Instead, it was part of an experimental endeavor designed to gain a deeper understanding of how blockchain infrastructure operates.
“It was one of the numerous research projects ITER has undertaken to explore and experiment with new technological systems,” Martínez commented.
At its peak valuation in early October, when Bitcoin reached around $126,000, ITER’s holdings were worth more than $12 million, according to data from CoinMarketCap.
Spain’s Growing Involvement in Crypto
This upcoming sale occurs at a time when financial institutions in Spain are increasingly demonstrating an active role within the digital asset sector.
In August, the prominent Spanish banking giant BBVA announced a significant partnership with Binance. This collaboration positions BBVA to serve as an independent custodian for customer funds that are backed by U.S. Treasurys. This arrangement allows Binance users to hold assets with BBVA, which the exchange then accepts as margin for trading activities.
Previously, BBVA had advised its wealth management clients to consider allocating a portion of their portfolios, ranging between 3% and 7%, to crypto assets, including Bitcoin. This recommendation signals a growing level of confidence in the asset class among major Spanish banks.