Bitcoin recovers slightly from Coldcard hack losses, gaining marginally above $63k

Bitcoin rebounded modestly to $63,711.60 on Monday, August 3, 2026, gaining 0.2% after cryptocurrency markets absorbed substantial losses from a critical security incident at Coldcard, a Canadian hardware wallet manufacturer operated by Coinkite Inc. The recovery represented only a partial rebound from earlier session weakness, as the market continued digesting the operational and reputational implications of the breach.

The Coldcard hack proved particularly destabilizing because cold wallets are industry-standard security infrastructure—devices intentionally isolated from internet connectivity to prevent unauthorized access. Coinkite disclosed late last week that a firmware vulnerability had been exploited to enable remote access, allowing threat actors to siphon user funds across over 4,500 compromised wallets. Galaxy Research quantified the theft at nearly $90 million in Bitcoin stolen in an estimated 41-minute window. The incident exposed a critical vulnerability in devices marketed as the safest custody method available to institutional and retail investors alike. Individual losses ranged substantially, with at least one Canadian user reporting $1.6 million in drained Bitcoin on July 29.

The security breach compounded existing market headwinds, including weak second-quarter earnings from major cryptocurrency companies and geopolitical developments that failed to provide offsetting support. Despite optimism surrounding renewed U.S.-Iran negotiations announced by President Donald Trump—which resulted in oil prices climbing as much as 5%—these developments offered limited cushion against the broader sentiment deterioration. A $134 million liquidation in Bitcoin long positions preceded the relief rally, with resistance materializing near $64,000 despite the temporary recovery attempt. Weekly volatility remained elevated, fluctuating between $62,000 and $66,000.

Strategy, the publicly traded Bitcoin treasury company led by Michael Saylor, executed a substantial asset reduction during the volatile period, selling 1,638 BTC for approximately $104.7 million between July 27 and August 2 at an average price of $63,957 per coin, according to an SEC filing. The transaction reduced Strategy's total holdings to 843,138 BTC (valued at $52.6 billion at current market prices). Notably, the company's aggregate cost basis across its holdings stands at approximately $63.5 billion, representing a significant unrealized loss given current valuations, with an average purchase price of $75,419 per coin including fees and expenses.