A single client of Galaxy Digital executed a massive bitcoin sale worth $9 billion last year, sparking renewed discussions about the potential impact of quantum computing on cryptocurrency.
According to Galaxy Digital CEO Mike Novogratz during the company’s Q4 2025 earnings call, this substantial transaction contributed to downward pressure on crypto markets as it took time for the position to be fully liquidated. The seller was identified as an early investor from the Satoshi era who decided to sell for estate planning purposes.
“It's similar to distributing shares in an IPO — prices typically dip during distribution and then recover once it concludes,” Novogratz explained after revealing that one customer offloaded $9 billion in bitcoin. “That seems to be where we are in this cycle. I can’t predict exactly when selling will taper off, but leverage is no longer heavily influencing the market.”
Novogratz suggested that this sale reflects a broader trend among early bitcoin adopters cashing out profits—a shift away from the long-held community ethos of 'HODLing' through market fluctuations.
“There used to be a strong cult-like belief in holding onto your bitcoin no matter what,” he noted. “But that enthusiasm has faded somewhat, leading more holders to start selling.”
Although news of this sale surfaced last year, its significance lies in reigniting debate among veteran bitcoin holders about waning confidence—especially amid concerns over quantum computing threatening Bitcoin’s security.
'Convenient Justification'
Novogratz described fears around quantum computing as a convenient rationale behind such large-scale sales. The crypto sector has long anticipated quantum technology posing risks down the line.
This concern is gaining traction recently as investors and experts evaluate how soon quantum computers might break Bitcoin’s cryptographic defenses.
While some argue practical quantum threats remain distant, developers warn that Bitcoin will require upgrades toward quantum resistance before these risks become critical. However, Novogratz cautioned against potential developer conflicts delaying progress—though he believes such disputes are unlikely.
“In my view, crypto won’t face major issues from quantum technology over time,” he said. “'tll pose bigger challenges globally but Bitcoin and other cryptocurrencies should adapt effectively.”
The shift away from unwavering HODLing may reflect deeper factors beyond just bearish market sentiment at present.
Notably, Cardano founder Charles Hoskinson has emphasized proactive efforts toward integrating post-quantum security features into Cardano’s blockchain architecture while early Bitcoin contributor Adam Back highlights ongoing research into robust cryptographic protocols for Bitcoin itself.
Samson Mow—the CEO of blockchain firm JAN3—believes banking systems would encounter significant threats first if powerful enough quantum machines emerge. Meanwhile Ethereum Foundation recently prioritized post-quantum security by establishing a dedicated team focused on future-proofing their platform against such vulnerabilities.
The Quantum Computing Challenge
A notable development fueling these concerns came when Coinbase publicly acknowledged that advances in quantum computing could threaten cryptocurrency safety long-term due primarily to Shor’s algorithm potentially breaking private key signatures protecting wallets’ funds.
This vulnerability means malicious actors equipped with sufficiently advanced quantum computers might access any wallet whose public keys have been revealed on-chain (public keys being analogous roughly to bank account numbers).
Bitcoin addresses today hash their public keys until coins are spent—which helps protect approximately two-thirds of bitcoins—but around one-third remain exposed and thus theoretically vulnerable if powerful enough qubit machines arrive someday soon enough.
An additional risk involves Grover’s algorithm which could accelerate computational attacks undermining network consensus mechanisms integral for maintaining economic incentives and overall system integrity within Bitcoin’s protocol design.
However , current state -of-the-art quant um devices have not yet reached levels near 1 ,000 qubits — widely regarded as necessary thresholds — with estimates suggesting millions would ultimately be required before compromising Bitcoins cryptography becomes feasible .
Nonetheless , even distant , theoretical dangers like these prompt tangible responses : last month Christopher Wood , Jefferies ’ global head of equity strategy removed his previously allocated 10 % exposure toward bitcoin citing increasing worries related specifically due its susceptibility under emerging quant um technologies .