Blockchain
Here’s how the US government’s Bitcoin holdings reached $13.82 billion
The US government owns a lot of bitcoin, and whether it holds it or sells it, it could significantly affect the price of Bitcoin. Public record reveal that Washington has confiscated more than 200,000 tokens from cybercriminals since 2020. Over the past 10 years, the US government has confiscated and dumped Bitcoin instead of simply holding onto it. Will they change the pattern this time?
The United States holds billions of Bitcoin
In the latest revelation, Arkham Intelligence has found that the US government seized 3,94,000 BTC (worth around $251 million) from drug dealer Banmeet Singh during a trial in January this year. This seizure helps increase the US government’s overall holdings, which now stand at 216,788,000 BTC, valued at approximately $13.82 billion, with a significant portion likely resulting from criminal seizures.
Furthermore, Arkham data reveals that the US, UK and Germany rank among the top countries holding cryptocurrencies at a government level. The US government leads the pack with 216,788,000 BTC, surpassing MicroStrategy’s recent purchase of 207,189 BTC worth $13.5 billion. The United Kingdom and Germany follow. Furthermore, El Salvador, the pioneer in adopting Bitcoin as legal tender, holds a relatively smaller amount of BTC.
The US government’s continued accumulation of Bitcoin, highlighted by a recent increase of at least 5,000 BTC since early 2023, indicates continued interest in the cryptocurrency. Notably, a sizable portion of the US government’s Bitcoin holdings come from seizures linked to entities such as dark web marketplace Silk Road and hackers associated with cryptocurrency exchange Bitfinex.
A force to be reckoned with
As the US government emerges as a potential global leader in government-held Bitcoin, surpassing the combined holdings of several countries, including China, the cryptocurrency landscape is poised to make an impact.
The market is closely watching the potential liquidation of more Silk Road Bitcoin and the uncertainties surrounding the sale of Bitcoin seized from Bitfinex hackers and criminal activity.