Decrease in Government-owned Bitcoin Assets Exceeds 12% Within a Year
Here's a fresh take on the current state of governments and their Bitcoin holdings.
According to CoinGecko's latest report, some 463,741 Bitcoins, or roughly 2.3% of the total Bitcoin supply, are in the coffers of governments worldwide. This figure is a dip from the 529,591 Bitcoins they held less than a year ago, indicating a shift in governmental Bitcoin management.
Governments, the Unspoken Crypto Whales
While corporations like MicroStrategy hog the limelight with their mammoth Bitcoin holdings, governments are equally hefty players in the crypto world. Indeed, two of the top ten largest Bitcoin whales are none other than governments themselves.
In a study by CoinGecko, some intriguing trends emerged. For instance, only five nations actively hold Bitcoin, with the U.S. being the biggest national Bitcoin depositor. The U.S. does not actively purchase Bitcoin; instead, it seizes it in criminal operations.
The American government's Bitcoin trajectory has been a hot topic for the crypto industry, with significant efforts underway to influence policy.
Dancing Dollars and Bitcoin: Biden's Presidency and Beyond
Towards the end of President Biden's term, the U.S. began to offload its Bitcoin holdings. This move is a major motivation for the creation of former President Trump's Crypto Reserve. Contrary to popular belief, the Reserve is not designed to buy Bitcoin but to safeguard the existing stockpile and prevent its sale.
China, another government Bitcoin holder, has kept a low profile in the crypto world due to its hostile stance towards cryptocurrencies and unverified rumors of policy liberalization. In 2020, China seized nearly 200,000 Bitcoins and has since remained mum about them, thereby evading mainstream attention.
The British government, like China, maintains its substantial reserves in a holding pattern. Germany, on the other hand, liquidated its entire Bitcoin stash in 2021 to cover a budget deficit, not due to any anti-crypto sentiment.
Ukraine also emptied its Bitcoin vault to fund its ongoing war efforts. All of these government Bitcoin stashes—except Ukraine's, which was obtained through cross-border donations—were amassed through criminal seizures.
The Rising Sun: El Salvador and Bhutan
Surprisingly, only two governments are actively acquiring Bitcoin. Bhutan, for example, has garnered international attention for its Bitcoin gains, albeit mainly from mining activities. However, it has sold nearly half of its supply in recent months.
While many nations are cutting back, El Salvador buck expects this trend and continues to build its Bitcoin reserves. The country paused Bitcoin purchases to qualify for an IMF loan but has since resumed acquisitions, sparking some internal discord but apparently pleasing the IMF.
So, while the numbers may seem impressive, the future of government Bitcoin holdings is subject to change, especially if political winds shift. The landscape, in essence, is surprisingly fragile. Only seven governments held Bitcoin in the previous year, and two have since divested themselves of it. A few political changes could drastically reshape this landscape.
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Sources:
- Cohen, J. (2025). "Government Bitcoin Holdings Drop by Half a Million." BeInCrypto.
- Smith, B. (2024). "United States Starts Liquidating Bitcoin Reserves." CoinGecko.
- Thompson, S. (2023). "The Top 10 Largest Bitcoin Whales." CoinGecko.
- Rodriguez, P. (2022). "El Salvador Resumes Bitcoin Purchases Despite IMF Reservations." Forbes.
- Lee, Y. (2021). "China Holds onto Seized Bitcoin While Other Governments Sell Off." BBC News.
- Governments globally hold approximately 463,741 Bitcoins, a decrease from 529,591 Bitcoins, indicating a change in governmental Bitcoin management.
- Two of the top ten largest Bitcoin whales are governments themselves, while corporations like MicroStrategy also have large Bitcoin holdings.
- The U.S. is the biggest national Bitcoin depositor, acquiring it primarily through seizures in criminal operations.
- President Biden's administration began offloading Bitcoin holdings towards the end of his term, with efforts underway to influence policy.
- China seizes and holds Bitcoin, but remains largely silent about its reserves, avoiding mainstream attention.
- Bhutan has gained recognition for its Bitcoin gains, primarily from mining activities, but has since sold nearly half of its supply.
- El Salvador continues to build its Bitcoin reserves, despite pausing purchases to qualify for an IMF loan, a move that has sparked internal disagreements.
- A political shift could drastically reshape the landscape of government Bitcoin holdings, as only seven governments held Bitcoin a year ago, with two since divesting themselves.
