The US Government’s Bitcoin Holdings
The United States government has seen a significant increase in its Bitcoin holdings, which now amount to at least $8.3 billion. This surge in holdings is a result of actions taken by authorities between November 2020 and 2022, where they seized and disclosed 207,189 BTC linked to various cases, including the Silk Road, Jimmy Zhong, and the Bitfinex breach. In contrast, MicroStrategy holds 189,150 BTC.
Currently, less than 5% of the seized bitcoins have been sold. In February of last year, officials sold 9,861 BTC from Silk Road for $215 million. The US attorneys plan to sell the remaining bitcoins in four batches over the next year.
BTC Sales by the US Government
The US Department of Justice potentially completed one batch of Bitcoin sales, sending 8,200 BTC to Coinbase. However, these trades remain unverified. If recognized as sales, the US government would have generated $640 million from seizing and selling Bitcoin over the past decade. If they had retained all seized BTCs, their holdings would be around 400,000 BTC worth $17.4 billion.
There is anticipation for more Silk Road Bitcoin to be liquidated by the US government in the future. The market is closely monitoring any developments regarding potential sales from Bitfinex hackers Ilya “Dutch” Lichtenstein and Heather “Razzlekhan” Morgan.
The US Government’s Dominance in Bitcoin Holdings
The US potentially holds the world’s largest government bitcoin stash, surpassing countries like El Salvador, Ukraine, Bhutan, Venezuela, and Finland combined. China also held a significant amount of BTC but may have sold its holdings early.
Hot Take: The US Government’s Growing Bitcoin Holdings
The United States government has seen a substantial increase in its Bitcoin holdings, thanks to successful seizures and sales. With at least $8.3 billion worth of BTC, the US government holds a dominant position in the crypto market. While some bitcoins have been sold, there is still potential for more sales in the future. As the cryptocurrency landscape evolves, these developments will be closely watched by market participants.
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