Mr. Nobuaki Kobayashi, Attorney-at-law and Rehabilitation Trustee of Mt. Gox, summoned the Fourth Creditors’ Meeting yesterday (March 25, 2020). From a document named the Outline of the Draft Rehabilitation Plan, leaked by the meeting, we can conclude the ultimate Mt. Gox release might be approaching.
Why? First of all, we need to understand that the famous Mt. Gox release was postponed twice due to large quantities of disputed and undetermined rehabilitation claims. However, the rehabilitation trustee seems to find a possible solution to the disputed claims by priortising the distribution to creditors with allowed rehabilitation claims only, while creditors with disputed claims have to wait until those claims are determined even though they might have some allowed claims at the same time. Once disputed claims are determined, the trustee will then proceed to make catch-up distributions.
If this is the case, the trustee does not have to wait until all disputed claims are determined. In the document, this is the only matter that may move Bitcoin’s price. Others are mostly details of the rehabilitation plan, for example, the trustee will prioritize fiat currency claims, and will only pay BTC/BCH with regards to crypto claims.
As we know, the trustee now holds more than 141,600 Bitcoins, and if released, these tokens will probably flood into the market in the short term as many creditors are reportedly short of funds. If it is the case, it will provide good opportunities for long-term investors to bottom fish, as global liquidity is also flooding the market, sooner or later, both Bitcoin and gold will hit new all-time highs. Please note that a sizeable proportion of the retirement accounts of the US Millennium Generation have invested 1.84% in GBTC, bitcoin trust developed by Grayscale investments, according to a survey by Charles Schwab in Q3 2019.
If the release is postponed again for another six months, we may not see any negative news for Bitcoin in the short-term (maybe the sale by Plus Token could be a small concern?).
On March 31, 2020, the rehabilitation trustee will announce whether they will submit the rehabilitation plan or not. Fingers crossed.