The administration of the Cabildo de Tenerife (CC-PP) has been endeavouring for over a year and four months to accomplish what the preceding ruling coalition (PSOE-Cs, with external backing from Sí Podemos) also criticised previously. They proclaimed they would achieve it but ultimately concluded their term without any tangible outcomes: recovering the public funds invested by the Technological Institute of Renewable Energy (ITER) in bitcoins, a sum that has since multiplied considerably. Indeed, within the realm of the infamous, contentious, and volatile cryptocurrency that, like a cork, surges upon confirmations of Trump’s potential return, simultaneously plunges many investors misled by so-called experts—many of whom now languish in prisons across various nations. The initial investment of 10,000 euros by the Tenerife Administration in 2012 has now escalated to approximately 9 million euros, which, however, has yet to be retrieved despite numerous proclamations, mutual criticisms, and the purported efforts of various government factions.
Presently, the coalition of nationalists and conservatives communicates to the Canary Islands that it has issued “instructions and is already negotiating with several financial institutions to establish the processes by which these bitcoins can be converted, estimated to be valued at around 9 million euros. These were procured in 2012 as part of a project related to blockchain technology” (the most prevalent method for acquiring, selling, and trading this currency). According to the current administration, this investment “has now turned into a public asset that will be realised and reinvested into the scientific community and the renewable energy sector, as part of ITER’s investment plan for the forthcoming years.”
The government claims it is already in discussions “with financial entities capable of managing the sale of these assets,” although it notes that “there are not many operating in this market in Spain, but we intend to engage with all of them with the assurances of a regulated operator. We will accomplish what the PSOE failed to do.” In this regard, CC and PP remind that “there were agreements at various levels within the previous ruling coalition to divest these bitcoins, yet the reality is that they were inept—like in many other matters—in executing those agreements.” Nonetheless, it remains unclear exactly where the funds are currently held and why the retrieval process has proven so difficult and continues to face challenges.
Mined, “opaque” world, and the perils of attributing them to an individual
During the previous administration, the then-island president, socialist Pedro Martín, publicly condemned the acquisition of bitcoins by the Cabildo through ITER, labelling it as a use of public funds in an “opaque realm.” He vowed to recover the investment but was never able to assure CC, despite multiple inquiries, that they had successfully reclaimed the existing amount at any point. In fact, as various media outlets reported at that time, the PSOE and Cs government had been striving to devise a method to liquidate these bitcoins since 2021, utilising the ITER supercomputer for mining (the process of adding new transactions to the blockchain of Bitcoin, thus bringing new bitcoins into circulation).
Furthermore, the former island president, Carlos Alonso, defended this bitcoin mining “not for the financial benefit but for its digital significance, the blockchain for its technological advancement.” Nonetheless, this investment consistently faced criticism from the PSOE for its inherent risks, arguing that public funds should not be allocated for such purposes (as administrations were divesting their purchases during those years). Additionally, with the PSOE at the helm, the former vice president, Enrique Arriaga (Cs), hinted at the obstacles to recovery, noting that the option of registering the bitcoins under the name of the CEO of ITER had been considered, though it could present complications due to the asset accumulation involved.
To date, a year and four months since the governmental transition, those nine million euros remain unrecovered, and the current leaders of the Cabildo signal efforts with unspecified specialised banks to achieve a result that appears, as of yet, impossible or excessively intricate.