Trump’s Pro-Crypto Stance: A New Era for Bitcoin?
Donald Trump made headlines at the Nashville Crypto Conference 2024 with his bold pro-crypto statements. The former president emphasized the importance of holding onto Bitcoin, saying, “Our government has violated the cardinal rule for too long, which every Bitcoiner knows: Never sell your Bitcoin.” This statement was particularly noteworthy given the US government’s history of selling off its Bitcoin holdings. In fact, between 2014 and 2023, the US government sold a staggering 195,091.75 BTC, worth around $366 million at the time of sale. Today, those same Bitcoins would be worth a whopping $22.2 billion.
The US Government’s Bitcoin Sales: A Look Back
The US government’s Bitcoin sales began in 2014, when the Drug Enforcement Administration seized 11 Bitcoins from the Silk Road market. Over the next few years, the government sold off thousands of Bitcoins through auctions, with notable sales including 29,657 Bitcoins to venture investor Tim Draper in June 2014, and 144,341 Bitcoins from Silk Road between December 2014 and November 2015. These sales were often made at relatively low prices, with the government winning around $47.1 million from the latter sale. Today, those Bitcoins would be worth almost $16.6 billion.
Other Countries’ Bitcoin Sales
The US is not the only country to have sold off its Bitcoin holdings. Germany, for example, sold 54,000 BTC in 2024 at a price of around $57,900, missing out on around $3 billion in potential gains. Finland, meanwhile, sold 1,900 BTC from drug crime in 2021, winning around $47 million. Bhutan, on the other hand, is one of the largest holders of Bitcoin among countries, with over 10,000 BTC in its balance sheet. However, the government occasionally sells off small amounts of Bitcoin.
How Much Bitcoin Does the US Government Really Hold?
Estimating the exact amount of Bitcoin held by the US government is tricky. According to Arkham, a company that analyzes and organizes blockchain data, the US government holds around 198,022 BTC, worth over $22 billion. However, this figure may not be entirely accurate, as it includes Bitcoins that are being held as evidence of crime and may eventually be returned to victims. The US Marshals Service, for example, holds around 29,000 Bitcoins, which is significantly lower than the amount displayed on the Arkham website.
The Nuances of Crypto Asset Ownership
It’s essential to distinguish between “possession” and “holding” when it comes to crypto assets. Not all crypto assets held by the US government are necessarily owned by the government. Some assets are state property, while others are being held as evidence of crime and may be returned to victims in the future. As Eugeniy Kitkin, Chief Business Development Officer at EMCD, notes, “Bitcoins are temporarily stated – waiting for court decisions or legal resolutions. They are not yet the government’s ownership, and many may never be.” Shawn Young, chief analyst at Mexc Research, adds that people need to better understand the legal nuances surrounding strategic crypto components, highlighting the need for clearer education and focus on how digital assets are treated in legal and institutional frameworks.
