Bitcoin – the world’s largest cryptocurrency, isn’t just a hot topic for investors; it’s also a strategic asset that the U.S. government is actively managing. So, how much Bitcoin does the U.S. currently own, where did it come from, and what’s new with President Donald Trump’s latest strategy? Let’s dive into the details below.
The U.S. Bitcoin Reserve
According to the latest data from Arkham Intelligence (as of March 7, 2025), the U.S. government controls approximately 198,109 BTC, valued at $17.8 billion at current rates. This figure positions the U.S. as the largest state holder of Bitcoin globally, outpacing many major investment funds.
Most of this Bitcoin wasn’t purchased outright but was seized from cybercrime and illicit activities. High-profile cases like Silk Road, Bitfinex, and the James Zhong seizure are key contributors. Notably, this reserve has never been officially audited. Federal agencies are currently conducting an inventory to bolster the newly established “Strategic Bitcoin Reserve.”
Trump’s “Strategic Bitcoin Reserve” Takes Shape
On the morning of March 7, 2025, President Donald Trump signed an executive order establishing the Strategic Bitcoin Reserve for the United States. Per the order, the reserve will include all Bitcoin confiscated from criminal, civil, and financial penalty cases. For now, the U.S. government has no plans to purchase additional Bitcoin from external sources, focusing instead on leveraging its existing holdings.
David Sacks, Trump’s Crypto and AI Policy Advisor, stated, “The U.S. will not sell the Bitcoin in its reserve. Instead, we see it as a tool for storing value to maximize long-term financial benefits.” Meanwhile, the Treasury and Commerce Departments have been tasked with drafting a strategy to acquire more Bitcoin in the future, provided it doesn’t rely on taxpayer funds.
The U.S. Once Dumped Bitcoin: A $17 Billion Lesson
Over the past decade, the U.S. sold off around 195,000 BTC, netting $366 million. Had it held onto this Bitcoin, its value today would exceed $17 billion – a staggering 46-fold increase. According to Sacks, this is a “costly lesson” for American taxpayers due to the lack of a long-term strategy.
Where Did the U.S. Bitcoin Come From?
The Bitfinex Case: Nearly Half the Reserve
Close to 50% of the U.S. Bitcoin stash originates from the Bitfinex hack in 2016 – one of the largest seizures in U.S. history. After a prolonged investigation ending in January 2022, law enforcement seized 94,636 BTC from Ilya Lichtenstein, the mastermind behind the attack. This haul accounted for about 80% of the 120,000 BTC stolen from Bitfinex.
Lichtenstein and his wife, Heather Morgan, managed to launder 25,111 BTC before their arrest. By late 2024, Lichtenstein was sentenced to 5 years in prison, while Morgan received an 18-month penalty. The seized Bitfinex Bitcoin remains unresolved, with the U.S. considering returning $9.4 billion worth of BTC to the exchange, per court filings from early 2025.
The Silk Road Saga: From Dark Web to Treasury
Another major source is the 69,370 BTC seized from an unidentified “Individual X” in November 2020, tied to Silk Road, the notorious dark web marketplace. Initially valued at $960 million, this stash ballooned to over $6.5 billion by late 2024. After years of legal battles, the Department of Justice (DOJ) secured approval to liquidate it, though plans stalled under the Biden administration.
The James Zhong Seizure: Hidden in a Popcorn Tin
In November 2022, the U.S. locked down 51,351 BTC from James Zhong – suspected to be “Individual X” from the Silk Road case. Valued at $3.38 billion, this Bitcoin was discovered in a basement safe and a popcorn tin in Zhong’s bathroom closet. It ranks among the largest asset seizures in U.S. history.
Missed Opportunities
On March 14, 2023, the U.S. sold 9,861 BTC from the Zhong case, pocketing $215.7 million. The original plan was to offload the rest in four additional batches throughout 2023, but it never materialized. In January 2025, the DOJ gained court approval to sell $6.5 billion worth of Silk Road Bitcoin, yet the Biden administration didn’t act before Trump’s inauguration on January 20.
With 198,109 BTC in its possession, the U.S. stands as the globe’s top Bitcoin holder, primarily from seizures like Silk Road, Bitfinex and James Zhong. Under Trump’s new policy, this Bitcoin won’t be sold off but retained as part of a long-term financial strategy. For more insights and latest updates on the Crypto market, follow MevX to stay ahead in the crypto space!