Retail investors and institutions aren’t the only ones holding Bitcoin, governments around the world do too. Not surprisingly, the U.S. government is the largest Bitcoin holder, with over 213,297 BTC. However, in most cases, the source of this cryptocurrency is primarily through seizures of criminal activity.
How Much Bitcoin Do Governments Hold?
As of July 29, 2024, governments around the world hold 2.6% of the circulating supply of Bitcoin, or 471,380.6 BTC, worth $32.7 billion. Governments are increasing their holdings of Bitcoin, either through confiscations from criminal activity or donations, or through active purchases. This trend reflects the growing importance and acceptance of digital assets in the global financial system.
USA
The United States is the largest holder of Bitcoin, with 213,297 BTC acquired through cryptocurrency seizures. The current value of the U.S. Bitcoin holdings is approximately $14.82 billion. A large portion of this comes from the shutdown of Silk Road, an online black market and one of the first modern darknet markets. When the U.S. government took down Silk Road, they seized approximately 69,000 BTC.
China
Despite China’s crackdown on cryptocurrency trading and mining, the country still holds a large amount of confiscated Bitcoin reserves, becoming the second largest government Bitcoin holder. The Chinese government currently owns about 190,000 Bitcoins, worth about $13.2 billion. Most of these Bitcoins were confiscated from the PlusToken Ponzi scheme, one of the largest cryptocurrency scams, which promised investors returns of up to 30%.
U.K.
The UK has seized about 61,000 Bitcoins, worth about $4.24 billion, from a money laundering operation. Police found multiple wallets linked to a Chinese food delivery worker who was found to have exchanged cryptocurrencies for cash or assets in Dubai. The seizures highlight the UK's determination to combat financial crimes involving digital assets, making the UK the third government with the highest cryptocurrency holdings.
El Salvador
El Salvador is the first country to make Bitcoin a legal tender. El Salvador has been actively buying Bitcoin, while other governments hold cryptocurrencies primarily through seizure. The country currently holds 5,800 BTC, worth approximately $400 million. In 2021, El Salvador became the first country to declare Bitcoin as legal tender. Since November 2022, the government has implemented a "1 Bitcoin a Day" program, purchasing 1 BTC per day, regardless of its market value. This proactive approach has put El Salvador at the forefront of national cryptocurrency adoption.
Ukraine
On the other hand, most of Ukraine's Bitcoin was obtained through donations to support its war efforts against Russia. In February 2022, the government published its Bitcoin wallet address on "X" to request donations. To date, the wallet has received 651.3 BTC ($45.23 million). In addition, Ukraine's "Come Back Alive Foundation" set up a wallet to receive donations to support the military. The foundation received a total of 685.1 BTC ($47.58 million). While these donations totaled 1,336.4 BTC, the current balance is 186.18 BTC (about $12.93 million) as these funds are actively used to aid its war efforts.
Germany
Germany has actively enforced its laws related to cryptocurrencies, confiscating 46,359 Bitcoins, valued at approximately $3.02 billion. The confiscation stemmed from an action in 2013 against pirate websites that violated the Copyright Act. The proceeds from the pirate actions were converted into Bitcoin, contributing to Germany's large holdings. However, as of July 12, 2024, the government has liquidated its entire holdings.
The meaning of government shareholding
Governments with large holdings of cryptocurrencies can significantly influence market prices through their actions. A recent example is the German government liquidating all of its Bitcoin holdings (46,359 BTC) between June 19 and July 12, 2024. This triggered a sell-off that sent Bitcoin down 15.7%, from $64,547.32 to $54,418.46.
Governments Holding Bitcoin
Government cryptocurrency holdings reflect a complex interplay of law enforcement actions and financial strategies. The top five governments holding large amounts of Bitcoin are:
As cryptocurrencies gain popularity, governments are likely to enact more regulations targeting crypto assets. This will lead to more aggressive cryptocurrency crackdowns, reduce crypto-related scams, and create a safer environment for retail investors.
Additionally, some governments may choose to actively purchase cryptocurrencies as part of their financial strategy, driven by a desire to diversify national reserves and embrace digital financial innovation. Tighter regulation could also lead to more countries investing in Bitcoin through over-the-counter (OTC) purchases or ETFs.
These different approaches—from seizure to active investment—illustrate the multifaceted impact of cryptocurrencies on national and global economies. As digital assets continue to integrate into the global financial system, government holdings of cryptocurrency will play a key role in shaping the future of cryptocurrency adoption and regulation, ensuring a balance of innovation and security in the evolving digital financial landscape.
The study analyzed data on the largest government Bitcoin holdings as of August 23, 2024, from ArkhamIntelligence.com and Bitcointreasuries.net, as well as news articles from Reuters, BlockWorks.co, and Bitcoin.com. The five governments holding the most Bitcoin are the United States, China, the United Kingdom, Germany, El Salvador, and Ukraine. U.S. dollar (USD) holdings were calculated using a Bitcoin price of $69,482.75.
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