Discover how the U.S. government's Bitcoin holdings surged from $5 billion to $12.09 billion, benefiting from criminal seizures and Bitcoin's remarkable rally. Explore the nation's significant position as a BTC holder.
It’s not just enthusiasts and financial magnates on Wall Street reaping the rewards of Bitcoin’s recent surge—thanks to the ongoing uptrend of the digital currency, the U.S. government finds itself in possession of a substantial $12 billion BTC fortune.
Over the past decade, the United States has confiscated tens of thousands of Bitcoins from various criminal enterprises, notably including the dark web marketplace Silk Road and the hackers responsible for the significant theft of digital assets from the crypto exchange Bitfinex back in 2016.
As of the latest information available, the American government holds a stash of over 194,000 Bitcoins, as per on-chain wallet data meticulously compiled by the asset management firm 21.co on Dune.
This amount has experienced remarkable appreciation since the price surge of Bitcoin began in the fall. Back in September, the U.S. government's Bitcoin holdings were valued at around $5 billion. Fast forward to the present, thanks to the token's remarkable resurgence, that same quantity of BTC is now evaluated at an impressive $12.09 billion.
Yes, you read that correctly: Over the span of just a few months, without any active involvement, the federal government has garnered more than $7 billion in pure Bitcoin profit.
Despite the current somewhat frosty relationship between the American government and Bitcoin, and cryptocurrency in a broader context, the United States unequivocally stands as one of the most substantial BTC holders globally.
The nation's government presently possesses approximately 1% of all BTC currently in circulation. Only the crypto exchange Binance and the pseudonymous Bitcoin creator Satoshi Nakamoto appear to have larger holdings.
At various points, the U.S. government has opted to divest small portions of its Bitcoin holdings. For instance, in January, it publicly declared its intent to sell $117 million worth of BTC seized from a convicted drug trafficker associated with Silk Road.
It remains uncertain whether officials overseeing the American government's crypto holdings are actively seeking to optimize the stash's value by strategically selling off portions during opportune market moments.
Yesterday, amidst a market frenzy that witnessed Bitcoin's price surge over 11% within a few hours, the U.S. government executed the transfer of nearly $1 billion worth of seized BTC linked to the Bitfinex hack to another wallet containing additional funds, as reported by Arkham Intelligence.