Several countries hold Bitcoin totaling $17.8 billion, according to analytics firm Arkham, raising concerns about possible liquidations and their impact on the cryptocurrency market.
Countries such as the United States, Great Britain, Germany and El Salvador have significant bitcoin reserves, each of which has different approaches to managing their digital assets.
The US government owns the largest Bitcoin portfolio, valued at $12 billion. It is worth noting that most of these assets were obtained as a result of seizures during high-profile criminal cases, such as the closure of the darknet site Silk Road in 2013.
Typically, US authorities auction off confiscated bitcoins, but recent events signal a shift towards a more market-based approach, including over-the-counter (OTC) sales. However, the timing of future sales remains unclear as the US government typically keeps its plans secret to prevent market manipulation.
The UK authorities hold about $3.3 billion worth of Bitcoin assets, most of which are also linked to law enforcement activities. The United Kingdom does not like to advertise its plans, but it is known that the country's tax authorities have also previously auctioned confiscated cryptocurrency.
Recently, Germany's Bitcoin assets, valued at approximately $2.2 billion, received media attention due to the country's government deciding to sell over $1 billion worth of seized cryptocurrency through over-the-counter transactions. This move is under close scrutiny from market participants, as German authorities previously preferred to store confiscated digital assets.
However, El Salvador took a different approach, amassing $314 million worth of Bitcoin as part of a national strategy to accept BTC as legal tender. Unlike other countries, El Salvador's bitcoin treasury was formed through strategic investment rather than asset confiscation.