United States and China lead in government ownership of cryptocurrency, with Bhutan investing in cryptocurrency mining utilizing hydroelectric power.
In a significant development, several governments around the world are increasingly viewing Bitcoin as a strategic asset, with the United States, China, the United Kingdom, Ukraine, and Bhutan collectively holding over half a million Bitcoins. This trend reflects Bitcoin's new position in the global economy.
The United States leads the pack, holding approximately 207,000 Bitcoins, worth around $24 billion. These holdings, primarily seized from cybercrime cases such as the Silk Road, Bitfinex Hack, and money laundering operations, have been consolidated under a Treasury-managed reserve, marking a shift from auctioning seized crypto to holding it as a strategic financial asset.
China follows closely with around 194,000 Bitcoins, valued at about $23 billion. These holdings, primarily from the PlusToken scam, remain under state control despite China's crackdown on cryptocurrency.
The United Kingdom is in third place with approximately 61,000 Bitcoins, valued at $7.3 billion. The majority of these holdings come from cybercrime and money laundering cases.
Ukraine holds about 46,351 Bitcoins, worth roughly $5.6 billion. These Bitcoins were primarily donated by international supporters during the ongoing Russia-Ukraine conflict.
Bhutan stands out as the exception, having acquired its Bitcoins through clean-energy-driven mining, rather than seizures. Bhutan ranks fifth, holding between 12,000 and 13,000 Bitcoins, worth an estimated $1.1-1.4 billion.
This shift towards Bitcoin as a strategic asset is a response to the global financial changes the world is facing, including high-interest rates, political uncertainty, and currency volatility. The increasing role of governments in the cryptocurrency market is a reflection of Bitcoin's new position as a strategic global asset, transitioning from an alternative asset.
Analysts suggest that the growing trend of governments holding Bitcoin signals its shift towards becoming a strategic asset amid global financial changes. The operation of Bhutan's Bitcoin mining began in 2021, and its operation was only recently revealed in an international media report.
The increasing role of governments in holding cryptocurrency has become a focal point for the market. The operation of the U.S. Government’s Strategic Bitcoin Reserve, for instance, aims to leverage Bitcoin’s potential as a unique store of value and to maximize its role in the global financial system.
The U.S. administration also signals intentions to develop budget-neutral strategies for potentially acquiring additional crypto assets, integrating Bitcoin further into national financial strategies, and showing institutional legitimization of crypto as a state asset class.
In summary, the trend of governments holding Bitcoin is reshaping national balance sheets and signaling sovereign interest in digital asset portfolios alongside traditional reserves. This trend is evolving rapidly, and it is expected to continue shaping the global financial landscape in the coming years.
- The shift in Bitcoin holdings by several governments, including the United States, China, the United Kingdom, Ukraine, and Bhutan, from being auctioned to being held as a strategic financial asset, may indicate a growing interest in cryptocurrency as a strategic global asset.
- International supporters donated Bitcoins to Ukraine during the ongoing Russia-Ukraine conflict, resulting in Ukraine holding approximately 46,351 Bitcoins.
- Bhutan, unlike other countries, acquired its Bitcoins through clean-energy-driven mining, setting it apart as the exception among governments holding Bitcoin.
