On Dec. 2, chatter erupted as the U.S. government transferred 19,799.989 BTC—valued at nearly $2 billion—to Coinbase Prime. Many speculated that the government had offloaded the bitcoin through the exchange. Coinbase Prime, the Nasdaq-listed company’s elite brokerage platform, caters to institutional investors and advanced traders seeking top-tier services.
Interestingly, Coinbase Prime holds a contract with the U.S. Marshals Service (USMS), a branch of the Department of Justice (DoJ), to manage and trade seized digital assets. Jason Lowery, a major in the United States Space Force and author of “Softwar: A Novel Theory on Power Projection and the National Strategic Significance of Bitcoin,” weighed in on the transfer on the social platform X.
“Just so I have something on permanent record that I can point to in the future,” Lowery said. “This is a huge strategic mistake. There is no price where it makes sense for the U.S. to sell any bitcoin it has under its control. They have no idea what they own, and it shows.”
Lowery added:
Remember this post when they inevitably try to justify a new version of EO 6102 to reclaim the bitcoin they sold off due to their ignorance about the true significance of this technology.
In Lowery’s thread, one user chimed in, referencing the German government’s decision to offload nearly 50,000 BTC earlier this year at a significantly lower price. “If the selling doesn’t let up, we’ll end up more embarrassed than the German [government],” the commenter quipped.
The U.S. government’s bitcoin transfer has sparked a complex debate about its understanding of digital assets’ strategic value. As national security professionals like Jason Lowery frame bitcoin as more than a commodity, this move raises questions about the long-term implications of liquidating such assets. Critics argue the decision underscores a potential underestimation of bitcoin’s transformative potential.
This incident, coupled with Lowery’s stark warnings, highlights broader concerns over institutional missteps in managing emerging technologies. If such actions reflect a lack of foresight, they could shape future policy debates and influence the narrative surrounding national digital asset strategies. For observers, the focus now shifts to whether this signals a pivotal shift or a missed opportunity in embracing bitcoin’s evolving role.
