Data from cryptocurrency analytics firm Arkham disclosure Several governments are holding significant amounts of Bitcoin, worth about $17.8 billion at current market prices.
Arkham highlighted large amounts of Bitcoin seized in criminal cases by the United States, United Kingdom, and Germany, while El Salvador purchased significant amounts for its treasury.
United States: 12 billion dollar in stock Bitcoin Reserve
The US government holds the largest share of Bitcoin, estimated to be worth up to $12 billion.
Much of this cryptocurrency is believed to have been seized in complex cases like the 2013 Silk Road bust and subsequent operations targeting darknet markets.
In 2020, the US Department of Justice seized more than $1 billion in Bitcoin related to Silk Road, marking one of the largest cryptocurrency seizures in history.
The United States regularly holds auctions to sell seized Bitcoin. The U.S. Marshals Service has overseen several such events since 2014.
However, recent reports indicate a shift towards a more market-based approach, including OTC sales.
It is currently unclear when the government will sell the coins and they often do not announce their plans in advance to prevent market manipulation.
The UK holds 3.3 billion dollar Bitcoin
According to Arkham analysis, the UK government holds around $3.3 billion worth of Bitcoin.
A significant portion of this may be due to various law enforcement activities.
In 2021, the UK’s Royal Police Service reported seizing £180 million (about $250 million at the time) in cryptocurrency in a money laundering investigation.
While the UK has been less vocal about its plans for these digital assets, the tax authority, HM Revenue and Customs (HMRC), has previously auctioned off seized cryptocurrencies.
Latest information on the sale or auction of this significant amount of Bitcoin remains limited, leading market observers to speculate about the UK’s long-term strategy for the assets.
Germany: 2.2 billion dollars in stock Bitcoin Reserve
Germany’s Bitcoin holdings are worth around $2.2 billion and have recently made headlines.
In February 2024, German authorities announced plans to sell about 1 billion euros ($1.08 billion) worth of seized cryptocurrencies, mostly Bitcoin.
The decision marks a significant shift from their previous approach of holding seized digital assets.
The German government has opted for a gradual sale strategy through OTC transactions to minimize the impact on the market.
The move represents one of the largest government liquidations of cryptocurrency to date and is being closely watched by market participants as well as other governments holding seized digital assets.
El Salvador: Bitcoin Treasury Worth $314 Million dollar
While not confiscated, El Salvador’s $314 million Bitcoin holdings are notable.
Unlike other countries, El Salvador’s Bitcoin treasury is part of a national strategy initiated by President Nayib Bukele.
The country became the first to adopt Bitcoin as legal tender in 2021 and has since accumulated holdings through direct purchases and mining.
El Salvador’s approach differs significantly from other governments because it represents strategic investment rather than confiscated assets.
The country has maintained its Bitcoin position despite market volatility, with Bukele occasionally announcing new purchases on social media platforms.
As governments continue to deal with the complexities of holding and potentially liquidating large amounts of Bitcoin, their decisions are likely to have a significant impact on crypto markets and regulatory frameworks around the world.
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