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US has more than $5 billion worth of bitcoins. And that makes it one of the largest holders of Bitcoin. An analysis by crypto firm 21.co shows that the US government amassed a significant portfolio of bitcoins. That’s over 200,000 bitcoins worth over $5 billion.
This sizable digital currency hoard persists despite the government selling several thousand bitcoins worth millions earlier this year. This estimate is based on data retrieved from public records, which estimated the value of 194,188 bitcoins at $5.3 billion. It is important to acknowledge that these estimates represent the lower limits of US government assets. Because they rely on publicly available information.
This analysis closely tracks Bitcoin movements associated with three major US government seizures since 2020. These include the seizure of 69,369 Silk Road Bitcoins in November 2020, the seizure of 94,643 Bitcoins of BitFinex in January 2022, and the seizure of James Zhong. From 51,326 BTC in March 2022.
which is mainly under the supervision of the Department of Justice and the Internal Revenue Service. It is worth noting that seized assets do not automatically become government property. Transfer ownership to the United States Marshals Service only after a final court order is issued by the court.
In addition to holding Bitcoin, the US government periodically divests itself of seized assets, often using court liquidation orders to facilitate the process. Notably, in 2014, billionaire Tim Draper acquired 30,000 Bitcoins through a US government auction.
Recently, the US government used cryptocurrency exchanges to sell seized bitcoins. And it avoids traditional public auctions. One such sale took place in March of this year, when the government sold 9,118 bitcoins on Coinbase, a transaction confirmed through a public filing.
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