The US Government Holds Over 200,000 BTC Worth $5 Billion
The United States government is now one of the largest holders of Bitcoin (BTC), with more than 200,000 BTC valued at over $5 billion. Despite selling a few thousand BTC earlier this year, the US government still holds a significant amount of the cryptocurrency.
According to an analysis by crypto firm 21.co based on public filings, it is estimated that the US government holds approximately 194,188 BTC, which is worth around $5.3 billion. The analysis acknowledges that these estimations are conservative and are based on publicly available information.
Bitcoin Movement and Seizures
The analysis focused on tracking the movement of Bitcoin in US government wallets associated with three major seizures since 2020. These include the Silk Road seizure of 69,369 BTC in November 2020, the Bitfinex Hack seizure of 94,643 BTC in January 2022, and the James Zhong seizure of 51,326 BTC in March 2022.
The US government stores its Bitcoin stash primarily offline in encrypted storage devices called hardware wallets. These wallets are kept under the custody of the Justice Department and the Internal Revenue Service.
Selling Seized Bitcoin
When assets are seized, they do not immediately become government property. The U.S. Marshals Service, responsible for selling seized property, only gains possession of the seized Bitcoin after a court issues a definitive forfeiture judgment.
In the past, the US government has sold a portion of seized Bitcoin through auctions. Notable among them was billionaire Tim Draper’s purchase of 30,000 BTC from a government auction in 2014. However, recent years have seen the government turning to crypto exchanges to sell seized Bitcoin through public auctions.
Earlier this year, the government sold 9,118 BTC on Coinbase through a public filing. This shift to crypto exchanges reflects the growing acceptance and integration of cryptocurrencies in traditional financial systems.
Hot Take: The US Government’s Growing Bitcoin Holdings
The United States government has become one of the largest holders of Bitcoin, with over 200,000 BTC in its possession. Despite selling some BTC earlier this year, the government still holds a significant amount of the cryptocurrency. This highlights the growing recognition and adoption of Bitcoin by institutional entities.
The US government’s Bitcoin holdings are primarily stored offline in encrypted hardware wallets. These holdings are a result of major seizures made by the government in recent years. While the government occasionally sells seized Bitcoin through auctions, it has also started utilizing crypto exchanges for these transactions.
This shift demonstrates the increasing mainstream acceptance and utilization of cryptocurrencies. It also indicates that governments are recognizing the value and potential of digital assets like Bitcoin. As the US government continues to hold a substantial amount of BTC, it further solidifies Bitcoin’s position as a legitimate and valuable asset in today’s financial landscape.
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