Two rare Casascius coins, each backed by 1,000 Bitcoin, have been activated after more than 13 years of dormancy, moving over $179 million in value on Friday.

Historical context of Casascius coins

One of the activated coins was minted in October 2012, when Bitcoin traded at $11.69, while the other dates back to December 2011, when the price was just $3.88.

This represents a theoretical return of around 2.3 million percent for the earlier coin, excluding minting costs.

Casascius coins, created by Utah entrepreneur Mike Caldwell between 2011 and 2013, are considered highly sought-after physical bitcoin collectibles.

Each coin features a tamper-resistant hologram and contains a private key for a fixed amount of bitcoin, with denominations ranging from 1 to 1,000 BTC.

Rarity and mechanics

Only 16 of the 1,000 BTC bars and 6 of the 1,000 BTC coins were ever produced.

Once the holographic sticker is peeled and the private key redeemed, the physical coin loses its bitcoin value.

Market impact and owner decisions

Redeeming a Casascius coin does not automatically mean the bitcoin will be sold or immediately hit the market.

In a previous case, a 100 BTC Casascius coin owner, known as “John Galt,” explained his motivation for redemption was safety, not liquidation. He stated:

“Having 100 BTC is life-changing for anyone. But the thing is, I’ve had it for so long that this was more about staying safe than suddenly getting rich.”

Collectible legacy and regulation

Caldwell ceased minting Casascius coins in 2013 after receiving a letter from FinCEN concerning money transmitter regulations.