Government Bitcoin Holdings: A Closer Look at Who Owns Bitcoin

Governments around the world are quietly amassing a significant amount of Bitcoin, with a combined total of 567,000 Bitcoins worth over $36 billion as of April 2024. This surprising revelation comes from BitcoinTreasuries, a website that tracks the amount of Bitcoin held by various entities, including governments.

The largest holder of Bitcoin among governments is the US Government, which holds over 210,000 bitcoins worth more than $13 billion. This amount surpasses even the holdings of major public companies like MicroStrategy, which has been accumulating Bitcoin aggressively since 2020.

Despite the growing interest in Bitcoin, central banks have been slow to adopt the cryptocurrency as a reserve asset. Only El Salvador has taken the bold step of making Bitcoin legal tender and actively accumulating the digital currency through various means.

Interestingly, the vast majority of the Bitcoins held by governments were not purchased but seized from criminals. The US, China, the UK, and Germany all acquired their Bitcoin holdings through various criminal investigations, including the shutdown of the Silk Road marketplace and the seizure of assets from Ponzi schemes.

As these confiscated Bitcoins are eventually auctioned off, governments stand to make significant profits. The US, for example, has already sold 195,000 Bitcoins for $366 million, a fraction of what they would be worth today.

The transparency of the Bitcoin blockchain has played a crucial role in tracking these transactions, from the dark web to government pockets. While Bitcoin has long been associated with cybercrime, its pseudonymous nature allows for a level of transparency that can benefit both law enforcement and legitimate institutions.

Overall, the growing presence of Bitcoin in government treasuries highlights the evolving landscape of digital assets and the potential impact they may have on traditional financial systems in the future.