Once Again, Tim Draper Wins Bitcoin Auction held by the US Marshals Service


Once Again, Tim Draper Wins Bitcoin Auction held by the US Marshals Service

Tim Draper, the managing director of Draper Fisher Jurvetson has again won the Bitcoin auction held by the US Marshals Service. The avid Bitcoin enthusiast is second time lucky to bag the Bitcoin that were seized by the US authorities from Silk Road, an organization that was running an illegal drugs business.

Thus, Tim Draper has continued his winning streak even in the latest Bitcoin auction by the government agency, the US Marshals Service. Interestingly, whereas in the first auction, purchased all 29,656 of the auctioned Bitcoin, in the latest auction he could get only one block of 2,000 BTC, which is worth roughly $750,000 in the current exchange market.

According to the authorities involved in the auction in total, 50,000 BTC confiscated from alleged Silk Road ringleader Ross Ulbricht, they divided the bunch into 10 blocks of 2,000 BTC and 10 blocks of 3,000 BTC for the event. Bidders did not have the ability to view other bids or change bids that they submitted during the auction and that is how Draper could win just one.

Talking to media professionals Tim Draper said that his company Draper Associates will now provide 300 BTC to each startup that graduates Boost VC’s next startup accelerator class as a result of the winning bid. According to him the Bitcoin-focused startup accelerator was notably founded by his son, Adam Draper.

The Value of Bitcoin May Go Up Says Draper

He admitted that the interesting part is that they are fixing the valuation and the 300 BTC are worth about $120,000 today. However, he believes that the value of Bitcoin may be worth quite a bit more, or less, when the entrepreneurs receive them. Thus, he hopes that the value will appreciate further and he would be able to reap profits.

Though Draper won the first bid, he says that he will need to purchase additional Bitcoin before Boost VC’s Tribe 5 graduates. According to him Boost has indicated it will likely invest in 15–25 Bitcoin startups for the upcoming class, meaning as much as 7,500 BTC could be needed for the initiative.

He says that he will still need to purchase some Bitcoin on the open market to fulfill his obligation to Boost. Nonetheless, he followed a similar strategy when he embraced this summer. He had then announced that the Bitcoin won in the initial auction would be used to help Bitcoin exchange Mirror serve more global consumers.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com