Bitcoin Holds Above $63,000 as Coldcard Wallet Losses Near $89 Million

Bitcoin rose 1.38% to $63,526 as of 17:00 ET Sunday, remaining above the $63,000 level as markets monitored developments surrounding a hardware wallet security incident and fresh corporate treasury activity.

Security incident

Losses linked to a Coldcard wallet vulnerability have reached 1,367 BTC (approximately $89 million), according to Galaxy Research. A third wave of transfers moved roughly 208 BTC from 1,912 addresses between Friday and Saturday, bringing the total number of affected addresses to 4,585 across three attack waves since July 30.

Galaxy Research said the issue stems from a March 2021 firmware update that generated wallet seeds using predictable software randomization rather than the device's hardware random number generator, potentially allowing attackers to reconstruct private keys without physical access to the device.

Users of Coldcard devices running firmware from the affected period may wish to review guidance issued by the manufacturer and assess whether additional security measures, including migrating assets to newly generated wallets, are appropriate.

Corporate treasury activity

Trump Media & Technology Group (DJT) reportedly transferred 2,628 BTC (approximately $165 million) to Crypto.com, according to Lookonchain. The company has disputed that the transfer represented a sale, according to The Block.

The company currently holds 4,260.73 BTC, which has been pledged as collateral for loans through May 2028, after initially acquiring 11,542 BTC at an average purchase price of $118,522 per Bitcoin. According to Lookonchain, its combined realized and unrealized losses are estimated at approximately $555 million.

Separately, Strategy Inc. (MSTR) maintained the dividend rate on its STRC preferred shares at 12%, while the stock recovered to $89.46 from a June low of $71.

ETF flows

Spot Bitcoin ETFs recorded more than $220 million in net inflows following a period of outflows, suggesting that institutional investment continued during the period, although the extent to which those inflows may offset broader market risks remains uncertain.