MicroStrategy is known as the corporate entity with the largest Bitcoin holdings, but the U.S. government has also become a significant player, having seized 70,000 BTC from Silk Road last month. The recent surge in Bitcoin’s price has increased the value of the U.S. government’s BTC assets to at least $8.3 billion, a substantial rise from the $5 billion reported three months earlier.
The increase in the U.S. government’s Bitcoin holdings is linked to actions taken between November 2020 and 2022, during which federal authorities seized 207,189 BTC in three separate operations involving Silk Road, hacker Jimmy Zhong, and the Bitfinex exchange hack. MicroStrategy, in comparison, holds 189,150 BTC, worth approximately $5.9 billion, and continues to pursue further acquisitions.
Notably, less than 5% of the BTC seized by the U.S. government has been sold to date. Last year, federal officials liquidated 9,861 BTC previously owned by Silk Road by transferring them to the Coinbase exchange, generating $215 million at an average price of $21,800 per BTC.
Furthermore, federal officials have expressed intentions to sell the remaining 41,491 BTC from Silk Road, valued at $1 billion then and $1.8 billion now. These sales are planned to occur in four phases over the next calendar year, with two months remaining until the period ends. The crypto community is keenly awaiting more information on the U.S. government’s Bitcoin assets and potential sales.
If the U.S. had retained all seized BTC, it could now hold 400,000 BTC worth $17.4 billion. The U.S. government has gained $640 million from Bitcoin confiscations and sales over the last decade, with Bitcoin’s price having increased 70-fold. China, having seized 195,000 BTC in 2020, could have rivaled the U.S. if it had not sold its holdings. The crypto market anticipates potential liquidations of more Silk Road Bitcoin by the U.S. government in the coming months.
