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A public research center in Tenerife is preparing to sell a Bitcoin stash it bought greater than a decade ago – a stock that has grown from a modest experiment right into a multimillion-dollar pot.
The Institute of Technology and Renewable Energy (ITER), affiliated with the Tenerife Island Council, reportedly purchased 97 BTC for around 10,000 euros in 2012. At current prices, the coins are actually value over $10 million.
Preparation for the liquidation of a long-held investment
ITER didn’t buy the Bitcoin as a bet on the value. According to local reports, the acquisition was a part of a project to explore blockchain and related systems. Now, after years of rising values, council officials are negotiating with a regulated Spanish financial institution to convert the assets into money according to Bank of Spain and CNMV rules.
The sales process faces hurdles. Banks and brokers often require detailed compliance documents for big crypto transactions. This implies that the transaction is carried out through official channels and never through a retail exchange. Some sources indicate that ITER has been attempting to sort out legal and administrative actions surrounding the holdings for years.
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Funds committed to research projects
The money raised from the sale will reportedly be used to fund recent research on the institute. ITER plans to place the proceeds into projects equivalent to quantum technology and other scientific work that it says will profit the island and regional development. Officials framed the plan as a method to turn an old experiment right into a public research resource.
Image: Finance Commission
How big is the profit?
The numbers are stark. Buying 97 Bitcoins for around 10,000 euros in 2012 and selling them now at market levels would mean a return within the 1000’s of percent. The exact figures depend upon the ultimate selling price and the exchange rates in effect on the day the coins are moved. Tax and legal costs could also impact the web amount the institution receives.
What officials said
Council members and ITER representatives have made transient statements to local press in regards to the plan, noting that the unique purpose was research slightly than investment. Officials are reportedly coordinating with legal and financial advisers to make sure the sale complies with Spanish rules on public funds and asset sales. The goal is to avoid any missteps that might delay the payout.
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