Which governments own the most Bitcoin—and how they got it
The United States government is one of the largest Bitcoin holders on Earth—not because Congress voted to create a strategic reserve, but because federal agents have spent a decade seizing cryptocurrency from criminals. Drug dealers, hackers, ransomware operators, and money launderers accumulated Bitcoin through illicit activity. Law enforcement tracked them down and confiscated their digital assets. Now the government sits on a fortune it never intended to acquire.
Nation-states now collectively hold hundreds of thousands of Bitcoin worth tens of billions of dollars. The paths to ownership couldn’t be more different—from criminal seizures to state-sponsored mining operations to deliberate treasury accumulation as national policy. Understanding who holds what, why they acquired it, and how they’re managing it reveals how governments are quietly becoming major players in an asset class many officials still view with deep suspicion.
The seizure states
The United States leads all nations with approximately 200,000 BTC accumulated primarily through criminal forfeitures. The haul began with the Silk Road takedown in 2013, when the FBI seized approximately 144,000 Bitcoin from the dark web marketplace and its operator Ross Ulbricht. The Bitfinex hack recovery in 2022 added another 94,000 BTC when authorities finally cracked a wallet containing proceeds from the 2016 exchange breach. Dozens of smaller cases—ransomware prosecutions, fraud investigations, money laundering takedowns—have added to the total over the years.
According to Arkham Intelligence data, US government Bitcoin wallets represent one of the largest concentrated holdings outside exchanges and early individual adopters. These assets sit in government custody pending auction or, increasingly, pending policy decisions about whether the traditional liquidation approach remains appropriate.
The United Kingdom holds a smaller but still significant position—roughly 61,000 BTC according to blockchain records. Much of this traces to a 2018 case involving two Chinese nationals linked to a £5 billion investment fraud and money laundering scheme. The seized devices contained access to wallets that the government has held since, watching the value fluctuate dramatically across multiple market cycles.
These seizure-based holdings share a common characteristic: the governments didn’t choose to buy Bitcoin as an investment or policy decision. They acquired it as a byproduct of law enforcement activity, and now face ongoing decisions about whether to convert these windfalls to cash or hold them as appreciating assets.
The mining nations
The United Arab Emirates took a fundamentally different path to Bitcoin ownership. The country holds an estimated 6,500 BTC sourced primarily through state-linked mining operations rather than seizures. Citadel Mining, which is 85% owned by UAE Royal Group, operates mining facilities that convert cheap domestic energy into cryptocurrency as a form of industrial policy.
This approach treats Bitcoin mining as a way to monetize energy resources while simultaneously building exposure to digital assets. The UAE has positioned itself as a crypto-friendly jurisdiction, and state-affiliated mining reinforces that positioning while generating assets that could appreciate over time.
Bhutan pursued a similar strategy through its sovereign wealth fund, Druk Holding & Investments. The small Himalayan nation is blessed with abundant hydroelectric power—far more than its population of roughly 800,000 can consume domestically. Rather than letting that capacity sit idle or selling electricity at low prices to neighboring India, Bhutan began mining Bitcoin quietly around 2023. The country now holds approximately 6,000 BTC, making it one of the highest per-capita sovereign holders in the world.
For both countries, Bitcoin represents an output of their energy infrastructure rather than a financial speculation. The mining operations generate revenue regardless of management’s view on cryptocurrency as a long-term store of value.
The true believers
El Salvador stands alone as the only country that has deliberately purchased Bitcoin as a treasury reserve asset through explicit government policy. President Nayib Bukele has championed Bitcoin as legal tender since 2021, and the country’s holdings have grown to approximately 7,500 BTC through a series of announced and unannounced purchases.
The strategy remains deeply controversial. The International Monetary Fund has repeatedly urged El Salvador to reduce its Bitcoin exposure as a condition of financial assistance. Critics point to the volatility risk of holding a significant national position in a speculative asset, particularly for a small developing economy with limited financial buffers. Supporters argue that Bitcoin appreciation has already generated paper returns that vindicate the approach, though the ultimate verdict depends on long-term price performance.
The policy crossroads
Governments holding seized Bitcoin face a genuine policy question with significant financial implications: sell or hold?
The traditional approach treats seized cryptocurrency like any other forfeiture. Convert to cash, deposit the proceeds in the treasury, and move on. The US Marshals Service has conducted regular Bitcoin auctions for years, converting criminal proceeds into dollars that fund law enforcement operations or compensate victims.
But a growing chorus of voices argues this approach systematically leaves money on the table. If Bitcoin appreciates over the long term—as it has historically, despite significant interim volatility—then selling seized assets at current prices amounts to selling low. Some officials and legislators have proposed holding seized Bitcoin as a strategic reserve, capturing future appreciation rather than locking in current prices.
The Trump administration has signaled interest in a strategic Bitcoin reserve, though implementation details remain unspecified. Senator Cynthia Lummis has proposed legislation that would formalize a holding policy. Whether these proposals advance—and what form they ultimately take—will influence both government finances and cryptocurrency market dynamics.
For markets, government holding patterns matter materially. A decision by the US to stop auctioning seized Bitcoin would remove significant and predictable selling pressure. Conversely, coordinated liquidation by multiple governments could create headwinds that take months to fully absorb.
Tracking sovereign wallets
Unlike gold bars in vaults or bonds in custodial accounts, government Bitcoin holdings exist on a public ledger visible to anyone with the tools to interpret it. When the US Marshals Service moves Bitcoin to auction, analysts see the transfer before any official press release. When El Salvador’s wallets show unusual activity, the observation circulates through crypto markets within hours.
Government wallet tracking through Arkham’s dashboards allows traders and policy analysts to observe accumulation patterns, identify potential liquidation signals, and monitor how government Bitcoin management evolves over time. This transparency creates unprecedented visibility into sovereign asset management decisions.
If more nations follow the UAE and Bhutan into state-affiliated mining, sovereign Bitcoin production could grow meaningfully. If large holders like the US shift from selling to holding, supply dynamics change in ways that support prices. Sovereign wallet activity has become part of the macro intelligence landscape that serious investors monitor—another signal in the complex web of factors that drive cryptocurrency markets.
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