SecondMarket Syndicate Bidders Real Winners of Bitcoin Auction

The US Marshals Service (USMS) confirmed today that a bidding syndicate organised by Bitcoin Investment Trust (BIT) and the trading division of SecondMarket took 48,000 BTC in its second bitcoin auction.

The 48,000 BTC (worth roughly $16.9m at press time) is the largest ever won in a USMS bitcoin auction, trumping the nearly 30,000 BTC won by venture capitalist Tim Draper this June. In total, SecondMarket and BIT secured 19 of the 20 bitcoin blocks put up for bid, while the remaining block was claimed by Draper.

Speaking to CoinDesk, SecondMarket managing director Brendan O’Connor expressed his excitement about the news given the work that went in to assembling the 104-person syndicate.

O’Connor said:

“When you put a lot of effort into something like this you want to win, you want to be able to bear some fruit and show some results. For all the folks internally that spent a lot of time and effort on this it was a very good conclusion.”

SecondMarket itself was not a bidder in its own syndicate, however, he confirmed, meaning none of the 48,000 BTC will be used by the illiquid asset exchange or as part of BIT, its open-ended bitcoin-only trust.