The Coldcard vulnerability incident has driven the weekly increase of new Bitcoin addresses to over 330,000

According to The Block, due to the wallet migration triggered by the Coldcard vulnerability, the number of new Bitcoin addresses surged from about 260,000 to over 330,000 last week, reversing the downward trend that persisted for most of 2026.

Since July 30, Coinkite hardware wallet users have lost at least 1,816 BTC (approximately $116 million) in four waves of attacks. The vulnerability originated from a firmware defect in 2021—using a less secure software random number generator when generating mnemonic phrases instead of the device's built-in hardware entropy source, allowing attackers to brute-force wallets generated offline. Coinkite has advised users who generated wallets between March 2021 and the release of the security patch to migrate to new wallets.

This incident highlights the risks associated with self-custody, as users are reassessing the pros and cons of self-custody versus custodial solutions like centralized exchanges or ETFs.