US government holds $6B worth of Bitcoin: Glassnode data Oluwapelumi Adejumo · 8 months ago · 2 min read
with insights from 
Glassnode
Judging by its precedence, the U.S. government could potentially sell off the Bitcoin within the next few years.
Apr. 28, 2023 at 10:30 am UTC
2 min read
Updated: April 28, 2023 at 10:25 am
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The United States government is one of the most significant Bitcoin (BTC) holders in the world, holding 205,514 BTC — worth $6 billion — according to Glassnode data.
Reflexivity Research co-founder Will Clemente noted that the U.S. government acquired its BTC through seizures.
For context, the U.S. Department of Justice seized $3.6 billion worth of Bitcoin connected to the 2016 Bitfinex hack last year. Before that, the government took70,000 BTC from Ross Ulbricht when it brought down the Silk Road.
The U.S. government’s substantial BTC holding places it ahead of whales like MicroStrategy — which has spent over $4 billion to acquire 140,000 units of the flagship digital asset.
Meanwhile, the largest BTC holder is the pseudonymous creator of the blockchain network, Satoshi Nakamoto, with 1 million BTC. Grayscale Bitcoin Trust follows him with 650,000 BTC. Others on the list include exchanges like Binance, Coinbase, and Bitfinex.
What would the US government do with its BTC?
Judging by its precedence, the U.S. government would likely sell off the digital assets in the next few years.
In March, the U.S. government filed a memo in the Southern District of New York showing it sold 9,861.17 BTC for $215.5 million. The memo revealed that the sold BTC was part of the assets it seized from the Silk Road marketplace.
The court filing further hinted that the government would still sell more BTC before the end of the year. Earlier this week, rumors emerged that the government was selling part of these assets.
Meanwhile, many industry players have criticized the government’s penchant for selling, pointing out that it could have made more money by holding. For instance, the U.S. government sold 29,657 Bitcoin for about $18 million in 2014. Today, the same asset would be worth almost $900 million.
Author
Journalist at CryptoSlate
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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The article you've provided discusses the United States government's substantial holdings of Bitcoin, amounting to 205,514 BTC with a market value of $6 billion, according to Glassnode data. To corroborate this information, Reflexivity Research co-founder Will Clemente is cited, emphasizing that the U.S. government acquired this significant Bitcoin stash through seizures.
The historical context sheds light on specific instances, such as the U.S. Department of Justice seizing $3.6 billion worth of Bitcoin related to the 2016 Bitfinex hack and the confiscation of 70,000 BTC from Ross Ulbricht during the Silk Road takedown. This reinforces the government's method of accumulating Bitcoin through legal actions.
In comparison to other major Bitcoin holders, the U.S. government surpasses entities like MicroStrategy, which has invested over $4 billion to acquire 140,000 BTC. The article also provides insights into the broader landscape, mentioning prominent Bitcoin holders like Satoshi Nakamoto (1 million BTC) and Grayscale Bitcoin Trust (650,000 BTC).
The central question raised in the article is about the potential actions the U.S. government might take with its Bitcoin holdings. Drawing on precedent, the article suggests that the government is likely to sell off these digital assets in the coming years. Evidence for this claim is found in a March memo filed by the U.S. government, revealing the sale of 9,861.17 BTC for $215.5 million, part of the assets seized from the Silk Road marketplace. The memo hints at further Bitcoin sales by the end of the year, and recent rumors suggest ongoing sales.
Critics within the industry argue against the government's tendency to sell off its Bitcoin holdings, pointing out missed financial opportunities. The article highlights a past instance where the U.S. government sold 29,657 Bitcoin for about $18 million in 2014, which, if held, would be worth nearly $900 million today.
This information is crucial for understanding the dynamics of cryptocurrency ownership at a national level and the potential impact of government actions on the market. It underscores the need for industry players and investors to stay informed about governmental decisions in the cryptocurrency space.
