Bitcoin has increasingly become a strategic asset not just for individual investors and corporations—but also for nation-states. A growing number of governments now hold significant BTC reserves, often acquired through law enforcement seizures. Collectively, five major countries currently hold over 518,000 bitcoins, representing more than 2.4% of Bitcoin’s total supply. While most of these holdings remain dormant, recent movements by the United States and Germany have sparked market anxiety amid already volatile conditions.
This article explores the current Bitcoin holdings and recent activities of these national-level whales, analyzing their origins, market impact, and potential future moves—all while addressing the growing influence of state actors in the crypto ecosystem.
United States: Largest Holder with Over 213,000 BTC
The U.S. government is the world’s largest national holder of Bitcoin. According to Arkham Intelligence, as of June 27, it controls more than 213,000 BTC, valued at over $12.97 billion. These holdings stem primarily from high-profile law enforcement operations, including the seizure of assets from:
- The Silk Road darknet marketplace
- The 2016 Bitfinex hack
- Hacker James Zhong, who stole 50,000 BTC in 2012 and was apprehended in 2022
Since 2014, the U.S. has reportedly sold at least 195,091 BTC, generating over $366 million in profit, according to Jameson Lopp, co-founder of Casa. Despite this, a substantial portion of its seized BTC remains in cold storage.
👉 Discover how government Bitcoin sales could shape market trends in 2025.
Recent Transactions: Minimal Market Impact
In the past week, the U.S. government transferred 3,940 BTC—worth around $240 million—to Coinbase Prime. These funds originated from an Indian darknet drug trafficking case. However, analysts suggest the move had limited impact on the broader market.
Ki Young Ju, CEO of CryptoQuant, explained that Coinbase Prime regularly handles large volumes during spot ETF inflows, processing between 20,000 to 49,000 BTC daily at peak times. Therefore, a transfer of nearly 4,000 BTC is well within normal operational thresholds and unlikely to trigger significant price volatility.
Still, any movement from such a large holder can amplify investor sentiment during periods of uncertainty—especially when combined with other macro pressures like Mt. Gox repayments.
China: 194,000 BTC from PlusToken Scheme
China ranks second in national Bitcoin holdings with approximately 194,000 BTC, valued at **$11.84 billion**, according to data from Bitcoin Treasuries. These bitcoins were seized during the investigation into **PlusToken**, a massive Ponzi scheme that defrauded investors of over $3 billion between 2018 and 2019.
Despite persistent rumors circulating in crypto communities about China preparing to offload part of its stash, there is no verifiable on-chain evidence to support these claims. The lack of transparent wallet addresses makes tracking Chinese government movements nearly impossible.
As a result, while speculation persists, most experts agree that any large-scale sale would likely be gradual and strategically timed to minimize market disruption—if it happens at all.
United Kingdom: 61,000 BTC from Major Money Laundering Case
The UK government holds roughly 61,000 BTC, worth over $3.72 billion, per Arkham data. Unlike the U.S. and Germany, the UK has not made any known transfers or sales of its seized bitcoins.
These funds originate from one of the largest crypto-related criminal cases in British history—a money laundering operation tied to a Chinese national accused of laundering £3 billion (~$4.3 billion) using Bitcoin. The case involved complex layering techniques and cross-border transactions, highlighting both the utility and traceability of blockchain technology.
With no signs of disposal activity yet, the UK’s holdings remain a latent force in the market—potentially influencing sentiment if future movements occur.
Germany: Sold 20% of Holdings Amid Market Volatility
Germany previously held around 50,000 BTC, mostly seized from Movie2k, a now-defunct piracy website operator. As of June 27, it retains approximately 45,000 BTC, valued at over $2.75 billion.
However, recent weeks have seen active movement. German authorities transferred about 8,495 BTC—roughly one-fifth of its total stash—to major exchanges including Kraken, Bitstamp, Coinbase, and market maker Flow Traders.
These transfers have raised concerns among traders about potential selling pressure. Yet analysts believe the distribution across multiple platforms suggests a strategy aimed at minimizing price impact—possibly preparing for future liquidation without triggering a market crash.
👉 Learn how whale movements like Germany’s can signal short-term price shifts.
El Salvador: Profit-Taking Off the Table
In contrast to seizure-based holdings, El Salvador has built its Bitcoin treasury through proactive accumulation. Since launching its “1 BTC per day” purchase policy in 2021 under President Nayib Bukele, the country now owns approximately 5,794 BTC, worth around $350 million.
Crucially, El Salvador is sitting on an unrealized gain of over $50 million, given its average acquisition cost was significantly lower than current prices.
President Bukele has repeatedly stated that the country has no intention of selling its Bitcoin reserves. To enhance transparency, El Salvador even launched its own public mempool explorer, allowing real-time tracking of transactions involving its official wallets.
This approach positions El Salvador not as a threat to market stability but as a long-term believer in Bitcoin’s value proposition.
Other Notable State-Linked Entities
While not official national treasuries, two other state-affiliated actors play significant roles in the crypto space:
Russia
Though not confirmed as direct government holdings, Russia accounts for roughly 11% of global Bitcoin mining hash rate, ranking third worldwide after the U.S. and China. This gives Russian entities considerable influence over network security and decentralization dynamics.
North Korea
Backed by state-sponsored hacking groups like Lazarus Consortium, North Korea has stolen an estimated $2 billion worth of cryptocurrency since 2018**, including **$600 million in 2023 alone. While these assets are likely held covertly, their eventual movement could disrupt markets unexpectedly.
Frequently Asked Questions (FAQ)
Q: How do governments acquire Bitcoin?
A: Most national Bitcoin holdings come from law enforcement seizures related to cybercrime, darknet markets, fraud schemes (like PlusToken), or ransomware attacks. Some countries, like El Salvador, actively purchase BTC as part of national financial strategy.
Q: Could government Bitcoin sales crash the market?
A: Large-scale dumps could cause short-term volatility, but historical data shows that gradual sales—such as those by the U.S.—are often absorbed by institutional demand and ETF inflows. Strategic timing helps mitigate major price swings.
Q: Why is El Salvador buying Bitcoin?
A: El Salvador aims to promote financial inclusion, reduce remittance costs, and attract foreign investment by adopting Bitcoin as legal tender. Its ongoing accumulation signals strong confidence in BTC as a long-term store of value.
Q: Can we track all government Bitcoin wallets?
A: Not all are publicly identifiable. While U.S., German, and El Salvadoran wallets are partially traceable via blockchain analytics platforms like Arkham, others—such as China’s—are obscured due to lack of transparency.
Q: Are national Bitcoin holdings a bullish or bearish signal?
A: It depends on intent. Accumulation (e.g., El Salvador) is generally bullish. Seized holdings may be neutral unless liquidated aggressively. However, even small transfers from large holders can trigger fear during uncertain markets.
Final Thoughts: National Whales Are Here to Stay
The rise of nation-state Bitcoin holders marks a pivotal shift in digital asset dynamics. With over half a million BTC under governmental control—mostly from illicit activity—these entities now wield considerable influence over market psychology and liquidity flows.
While only the U.S. and Germany have begun distributing their assets so far, every wallet movement is scrutinized by traders worldwide. Meanwhile, countries like El Salvador showcase an alternative model—one rooted in adoption rather than confiscation.
As regulatory frameworks evolve and blockchain surveillance improves, understanding these national players will be essential for navigating future crypto cycles.
👉 Stay ahead of whale movements and market shifts with real-time insights.