Galaxy Digital Denies Claims Linking $9B Sale to Quantum Risk

Key Insights:

• Galaxy Digital says the $9B Bitcoin sale wasn’t triggered by quantum-computing fears, and research head Alex Thorn shut down the rumor on X.
• Galaxy posted a $482 million net loss in Q4 2025 and ended 2025 down $241 million, as BTC price briefly slipped below $74,000 while markets stayed on edge.
• Quantum-risk debate is still active: Jefferies’ Christopher Wood reportedly dropped a Bitcoin allocation call. Adam Back said the threat is likely 20–40 years away, and some advocates are pushing BIP-360 for post-quantum signatures.

Galaxy Digital is disputing suggestions that a massive $9 billion Bitcoin sale by one of its clients was driven by fears of an imminent quantum computing threat.

The crypto financial firm’s CEO, Mike Novogratz, addressed the issue directly. His comments followed reports of a long-time Bitcoin holder selling BTC. The seller was described as a Satoshi-era investor. Roughly 80,000 BTC were offloaded in late 2025. The sale was valued at about $9 billion.

While quantum security concerns were cited as a justification for the sale, Galaxy Digital’s leadership is pushing back. It’s calling that rationale a “big excuse” and pointing instead to more conventional reasons like profit-taking and estate planning.

Massive $9B Bitcoin Sale and Market Impact

The $9 billion Bitcoin transaction, facilitated by Galaxy Digital, ranks among the largest ever recorded in the crypto market. The firm disclosed that it executed the sale as part of the client’s estate planning strategy.

The selling process was carefully managed over time to limit market disruption. The approach was similar to distributing a large initial public offering. The goal was to avoid spooking the market. In fact, blockchain data showed that Galaxy Digital moved tens of thousands of BTC to exchanges during that period without crashing the price.

Industry analysts noted the remarkable resilience: approximately 80,000 BTC (over $9 billion) hit open market order books, yet Bitcoin’s price “barely moved” in response. The sale ultimately accounted for roughly 25–33% of BlackRock’s iBit Bitcoin ETF inflows in 2025, providing a sense of scale.

The market absorbed the whale-sized liquidation with only a brief 4% dip. Prices recovered within a day. This highlighted the depth and maturity of Bitcoin’s liquidity.

Quantum Risk Fears Emerge – and Are Questioned

Reports around the time of Galaxy’s earnings call suggested that the anonymous seller was motivated by worries that advancing quantum computing could threaten Bitcoin’s security.

In theory, a powerful quantum computer in the future might crack Bitcoin’s cryptographic safeguards. That could allow bad actors to steal coins by deriving private keys from public addresses.

This specter of “quantum risk” has been a topic of debate in the crypto community, and the $9B sale news reignited those discussions. However, Galaxy Digital has been quick to challenge this narrative.

On a Monday earnings call, CEO Mike Novogratz bluntly labeled the quantum threat rationale as the “big excuse” behind the sale. Novogratz suggested that the investor’s exit had less to do with sci-fi scenarios and more to do with pragmatic financial reasoning amid Bitcoin’s huge run-up.

The seller was a veteran holder sitting on enormous gains; as Novogratz put it, “there were a tremendous amount of religious believers in this concept of HODLing, and somehow that fever broke and you started seeing some selling”.

In other words, early adopters who preached holding Bitcoin through every crash eventually decided to take profit, quantum fears notwithstanding.

Novogratz: Confident Bitcoin Can Thwart Quantum Threats

Galaxy Digital’s chief executive does not dismiss the long-term importance of quantum computing. However, he strongly doubts it poses any immediate danger to Bitcoin. Novogratz acknowledged that quantum technology has “long been expected” as a potential threat to cryptocurrencies.

Yet he expressed confidence that the crypto ecosystem will respond in time. He noted that Bitcoin’s core developers and the wider industry would implement quantum-resistant upgrades. That would happen well before any theoretical supercomputer could undermine the network’s cryptography.

Adding that Bitcoin, especially, can handle it. In his view, the recent sale should be seen as a one-off event. It involved an early investor cashing out after a decade of strong returns. Quantum anxiety was used as a convenient talking point. It was not a sign of broader fear among Bitcoin holders.

Quantum Computing Debate Intensifies in Crypto Industry

The Cardano network has also publicized efforts to integrate quantum-resistant techniques into its upgrades. Meanwhile, crypto-linked researchers at major firms have quantified the risk in stark terms.

Coinbase’s head of research warned last month that about 6.5 million Bitcoin could be vulnerable. That figure represents roughly one-third of the total supply. The risk would arise if quantum computers break current encryption protocols. However, most experts agree that today’s quantum hardware is far from capable of such feats.

Current quantum machines operate with under 1,000 qubits, while millions of qubits would likely be required to crack Bitcoin’s SHA-256 encryption. That makes the threat “non-imminent” in the view of scientists and even cautious institutional players.

Some high-profile investors are acting preemptively. Jefferies strategist Christopher Wood recently cut a 10% Bitcoin allocation from his portfolio. He cited concerns over quantum security. However, many cryptographers argue that timelines for a quantum breakthrough are exaggerated.

Market Resilience Overshadows Quantum FUD

While quantum computing remains a fascinating theoretical risk, the immediate market reaction to Galaxy Digital’s whale-sized sale suggests confidence in Bitcoin’s robustness.

The cryptocurrency’s price remained stable despite a $9B liquidation. This underscored the maturity of Bitcoin markets. Institutional buy-side demand, including ETF flows and long-term investors, helped support prices.

Galaxy Digital’s handling of the transaction drew attention. Novogratz also publicly rebutted the quantum narrative. Together, they sent a clear message. Even as new technological threats emerge, concrete data and execution matter more than fear, uncertainty, and doubt.

For now, Galaxy Digital is signaling that it sees no cause for alarm in Bitcoin’s fundamentals. The firm’s stance, backed by the smooth absorption of this record sale, is that Bitcoin can weather the hypothetical quantum storm. It has already overcome past challenges, from regulatory crackdowns to fork controversies.

In true Wall Street fashion, the numbers spoke for themselves. About $9 billion in Bitcoin was sold, yet the market held strong. Galaxy Digital remains confident that innovation and preparation, not panic, will keep crypto ahead of emerging risks.