An early Bitcoin adopter known as "Johngalt" has finally redeemed his 100 BTC Casascius physical bitcoin bar after holding it for over 13 years - a collectible now worth over $10 million at current prices.
The $10 Million Physical Bitcoin Redemption
Johngalt purchased his 100 BTC Casascius bar in 2012 when Bitcoin was trading at just $5, paying approximately $500 for what would become one of the most valuable physical cryptocurrency collectibles in existence.
The redemption process occurred on May 13, 2025, when Johngalt carefully peeled back the tamper-evident hologram to reveal the private key and transferred the full 100 BTC (worth over $10 million) to a new wallet address.
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Why Hold Physical Bitcoin for 13 Years?
Johngalt explained in Bitcointalk forum posts that he resisted redeeming the bar for years due to:
- The significant emotional value of owning an unredeemed physical Bitcoin
- The stress of securing such high-value physical assets
- Concerns about properly valuing and selling such a rare collectible
As Bitcoin's price crossed $100,000, the security risks of holding an eight-figure asset in physical form ultimately motivated the redemption.
Technical Challenges During Redemption
The process wasn't without complications:
- Initial attempts using Electrum on Android failed due to mini private key compatibility issues
- Ultimately used bitaddress.org to convert the mini key to standard format
- Funds were manually transferred using Trezor Suite for security
- Transaction was confirmed on-chain before publicly announcing the redemption
The $40,000 Mistake
In a costly oversight, Johngalt posted photos of the Casascius private key online before first sweeping the Bitcoin Cash (BCH) associated with the same private key.
Within nine minutes of his post, forum observers had claimed the BCH, resulting in an estimated $40,000 loss.
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Physical Bitcoin Storage Risks
The incident highlights several risks of physical cryptocurrency storage:
- Security threats: Potential for theft or kidnapping as values increase
- Environmental hazards: Fire, water damage, or adhesive failure could destroy keys
- Technical obsolescence: Changing wallet formats and standards over time
- Human error: Mistakes in redemption processes can prove costly
The Collector's Perspective
Despite redeeming the BTC, Johngalt confirmed he won't sell the now-empty bar, which remains:
- A piece of Bitcoin history
- A conversation piece about early cryptocurrency adoption
- Proof of his longstanding belief in Bitcoin's potential
FAQs About Physical Bitcoin Redemption
How much was the Casascius bar originally worth?
Purchased for $500 when BTC was $5 (100 BTC × $5 = $500).
What's the current value of 100 BTC?
Approximately $10 million at current prices (100 BTC × $100,000).
How do you redeem a physical Bitcoin?
- Carefully remove the hologram to reveal the private key
- Import the key into a compatible wallet
- Transfer funds to a new secure address
- Always sweep associated coins (like BCH) first
Why keep the empty bar?
It maintains historical significance as an early cryptocurrency artifact.
What precautions should physical Bitcoin holders take?
- Store in secure, climate-controlled environments
- Document proper redemption procedures
- Consider insurance for high-value items
- Never publicly share private keys prematurely
Are physical Bitcoins still made today?
Most physical Bitcoin products were discontinued due to regulatory concerns, making early examples like Casascius bars highly collectible.