As of April 2025, governments around the world collectively hold over 463,741 bitcoins, representing approximately 2.3% of Bitcoin’s total supply. This marks a decline from the 529,591 BTC reported in July 2024, reflecting a dynamic landscape where some nations are actively accumulating while others are liquidating their holdings. Countries like El Salvador and Bhutan continue to expand their reserves through strategic purchases and sustainable mining, while major holders such as the United States and Germany have reduced their positions through asset sales.
This shift underscores the evolving role of Bitcoin in national financial strategies — ranging from seized criminal assets to state-backed digital reserves. Below, we explore government Bitcoin holdings, acquisition methods, motivations behind sales, and how these actions influence the broader crypto market.
How Have Government Bitcoin Reserves Changed Over Time?
Since 2023, government-held Bitcoin has fluctuated significantly due to confiscations, sales, mining activities, and geopolitical factors. The period from January 2023 to April 2025 reveals distinct national approaches to digital asset management.
United States: The Largest Holder with Strategic Shifts
The U.S. remains the largest government holder of Bitcoin, with approximately 198,012 BTC (valued at around $18.3 billion). Most of these holdings were acquired through law enforcement seizures, including assets from the Silk Road marketplace and the Bitfinex hack.
Despite being a top holder, the U.S. has gradually reduced its stash through periodic auctions. However, a major policy shift occurred in March 2025 when President Donald Trump signed an executive order establishing the “Digital Fort Knox” — a centralized strategic reserve designed to consolidate and preserve confiscated crypto assets rather than immediately selling them.
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This move signals a long-term recognition of Bitcoin’s value as a digital store of wealth and could influence other nations to adopt similar preservation strategies.
China: Silent Holder of Massive Confiscated Assets
China ranks second with an estimated 194,000 BTC (worth about $17.6 billion), primarily seized during the crackdown on the PlusToken Ponzi scheme in 2019. Despite its strict ban on cryptocurrency trading and mining, the Chinese government has not liquidated these holdings.
There is no official statement regarding future plans for these assets, but analysts speculate that they may be held as a silent reserve or used for strategic purposes in digital currency development.
United Kingdom: Law Enforcement-Driven Accumulation
The UK holds 61,000 BTC (approximately $5.6 billion), all obtained through anti-crime operations involving money laundering and cybercrime. Unlike Germany, the UK has not yet sold any of its holdings.
Recent policy discussions suggest potential use of these assets for public spending or economic stabilization, though no final decision has been made. The government is evaluating whether to sell during favorable market conditions or retain them as part of a broader digital asset strategy.
Bhutan: A Model of Sustainable Government Mining
Bhutan stands out as a unique case — it has accumulated 8,594 BTC (around $795 million) not through confiscation or purchase, but via hydropower-driven Bitcoin mining. Leveraging its abundant renewable energy, the country operates a government-supported mining initiative that turns excess electricity into digital assets.
This approach offers a sustainable model for nations seeking energy monetization without relying on market purchases or criminal asset seizures.
El Salvador: Proactive National Adoption
El Salvador continues to lead in proactive Bitcoin integration, holding 6,135 BTC (valued at $567 million). Since November 2022, President Nayib Bukele has maintained a daily purchase policy — buying 1 BTC per day regardless of price.
This strategy reinforces Bitcoin’s status as legal tender and part of the nation’s long-term economic diversification plan. Future plans include issuing sovereign Bitcoin-backed bonds (“Volcano Bonds”) to fund infrastructure projects.
Ukraine: Crypto Philanthropy in Crisis
Since 2024, Ukraine has received over 256 BTC ($21.3 million) in donations from global supporters to support military and humanitarian efforts during ongoing conflict. These funds were quickly converted into fiat currency to meet urgent needs.
While Ukraine does not maintain a standing Bitcoin reserve, its experience highlights how decentralized finance can enable rapid international aid outside traditional banking systems.
Germany: Full Liquidation and Market Impact
Germany held 46,359 BTC before fully liquidating its position by mid-2024. The sale was conducted to cover budget deficits and resulted in a 17% drop in Bitcoin’s market price over several weeks.
This event demonstrated how large-scale government sell-offs can create short-term volatility — a cautionary tale for investors monitoring state-held crypto reserves.
How Do Governments Acquire Bitcoin?
There are four primary ways governments accumulate Bitcoin:
Asset Seizures
Law enforcement agencies in the U.S., China, and the UK have seized vast amounts of Bitcoin linked to illegal activities:
- U.S.: Silk Road, Bitfinex hack
- China: PlusToken scam
- UK: Money laundering networks
These seizures often result in long-term holdings or planned auctions.
Active Purchases
El Salvador is currently the only nation making consistent, market-based purchases. Its daily acquisition model aims to build national wealth and promote financial innovation.
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Mining Operations
Bhutan leads this category with state-backed mining powered by clean hydropower. This method allows governments to generate Bitcoin without direct market exposure or reliance on confiscated assets.
Donations
In times of crisis, governments like Ukraine’s receive voluntary crypto contributions from individuals and organizations worldwide. While not a formal reserve strategy, it showcases crypto’s role in emergency funding.
Why Do Governments Sell Their Bitcoin?
Not all governments choose to hold long-term. Several factors drive liquidation decisions:
Budget Deficits
Countries facing fiscal challenges may sell crypto assets to balance budgets. Germany’s 2024 sale exemplifies this trend.
Market Timing
Governments may time sales during bull markets to maximize returns. Strategic selling can generate significant revenue but risks destabilizing prices if done too rapidly.
Legal Requirements
In many jurisdictions, seized assets must be converted into fiat currency within a set timeframe. The U.S., for instance, regularly auctions confiscated Bitcoin due to legal mandates.
Top Five Governments Holding Bitcoin (April 2025)
- United States – 198,012 BTC
- China – 194,000 BTC
- United Kingdom – 61,000 BTC
- Bhutan – 8,594 BTC
- El Salvador – 6,135 BTC
These figures reflect both strategic accumulation and passive acquisition through enforcement actions.
Frequently Asked Questions (FAQ)
Why do governments hold Bitcoin?
Governments hold Bitcoin primarily through asset seizures related to crime. Some also view it as a strategic reserve asset or use mining to monetize energy resources.
Has any country banned Bitcoin but still holds it?
Yes — China bans cryptocurrency trading and mining but holds nearly 194,000 BTC seized from the PlusToken fraud case.
Can government Bitcoin sales affect the market?
Absolutely. Germany’s sale of 46k BTC in 2024 caused a nearly 17% price drop, showing that large-scale liquidations can trigger significant volatility.
Is El Salvador’s daily Bitcoin purchase policy still active?
Yes — as of April 2025, El Salvador continues buying 1 BTC per day under President Bukele’s national strategy.
Does the U.S. still sell confiscated Bitcoin?
While the U.S. previously auctioned seized coins, the new “Digital Fort Knox” initiative suggests a shift toward long-term retention of crypto assets.
Could more countries start mining Bitcoin like Bhutan?
Yes — nations with low-cost renewable energy (e.g., Iceland, Norway) could replicate Bhutan’s model to sustainably generate digital assets.
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