US secretly runs Bitcoin programs for national security advantage
The US government has confirmed it is running classified Bitcoin programmes as part of its national security strategy. Defense Secretary Pete Hegseth revealed the initiatives during a congressional hearing, marking the first time such operations have been publicly acknowledged at this level. The move highlights Bitcoin’s growing role in global military and economic competition.
Meanwhile, major powers like China and Russia continue to expand their influence in Bitcoin mining, despite regulatory crackdowns. The cryptocurrency is now being used in active conflict zones, further tying it to geopolitical tensions.
Defense Secretary Pete Hegseth testified before Congress that the Pentagon operates two Bitcoin-related programmes. One focuses on integrating the technology for US strategic advantage, while the other aims to counter its use by adversaries. This marks the first official confirmation of such efforts by a sitting defense chief.
INDOPACOM Commander Admiral Samuel Paparo added that the US Indo-Pacific Command runs a live Bitcoin node. The military branch actively tests the protocol in operational environments, exploring its potential to impose real-world costs in cybersecurity scenarios. The US has also built a strategic Bitcoin reserve, holding around 200,000 coins seized from forfeitures. These assets provide financial leverage in global economic competition, particularly against China. China still controls about 12% of the world’s Bitcoin mining power, despite banning domestic operations in 2021. Underground and offshore mining keeps the country influential in the sector. Russia, meanwhile, holds roughly 16% of the global hashrate, making it the second-largest mining hub after the US. The geopolitical stakes rose further when Iran demanded Bitcoin payments for transit through the Strait of Hormuz. This move directly links the cryptocurrency to military tensions in a critical shipping route.
The Pentagon’s Bitcoin initiatives give the US new tools in its rivalry with China and Russia. Both nations maintain significant mining capabilities, ensuring the cryptocurrency remains a factor in global power struggles. With Bitcoin now tied to active conflicts and military strategy, its role in national security is likely to expand further.
