A Galaxy Digital client sold $9 billion in Bitcoin (BTC) during Q4 2025, with quantum computing concerns cited as justification.
CEO Mike Novogratz called the quantum threat the "big excuse" during Monday's earnings call.
The sale from a Satoshi-era investor took time to unwind like distributing an IPO. Novogratz noted profit-taking by early bitcoin adopters reflects weakening conviction in the "HODLing" philosophy.
"There were a tremendous amount of religious believers in this concept of HODLing," Novogratz said. "And somehow that fever broke and you started seeing some selling."
What Happened
The sale represented one-quarter to one-third of BlackRock's iBit bitcoin ETF inflows for all of 2025. Galaxy facilitated the transaction as an estate planning move during July 2025, though the quantum computing angle emerged in recent earnings discussions.
Novogratz acknowledged quantum technology has long been expected as a threat to crypto. He dismissed concerns that Bitcoin developers would fail to implement quantum-resistant upgrades when needed.
"I just don't see that happening," Novogratz said. "In the long run, quantum will not be a big issue for crypto. It'll be a big issue for the world but crypto, and Bitcoin especially, will be able to handle it."
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Why It Matters
Industry responses to quantum threats have accelerated recently. The Ethereum (ETH) Foundation created a dedicated Post-Quantum team in January while Cardano (ADA) has pushed for quantum-resistant upgrades.
Coinbase acknowledged Shor's algorithm could break signatures protecting private keys of bitcoin addresses. Modern bitcoin addresses hash their public keys, meaning approximately one-third of supply faces potential quantum threat.
Current quantum computers operate below 1,000 qubits. Millions are estimated necessary to compromise bitcoin's cryptography, making the threat non-imminent.
Novogratz positioned the sale within broader early-adopter profit-taking rather than genuine quantum fears. The exodus reflects weakening conviction after years of championing holding through volatility.
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