Global Government Bitcoin Holdings Fall Over 12% in a Year, CoinGecko Reports
Government-held Bitcoin reserves have dropped sharply over the past year, according to a new analysis by CoinGecko. As of now, national governments collectively hold approximately 463,741 BTC — about 2.3% of the total Bitcoin supply — marking a notable 12.4% decrease from 529,591 BTC less than a year ago.
While the figures remain significant at first glance, the broader trend points toward a steady decline in government Bitcoin holdings. Out of seven governments that previously maintained reserves, two have fully liquidated their positions. Among the remaining, only El Salvador is actively adding to its Bitcoin stockpile.
A Closer Look at Government Bitcoin Strategies
Although much media attention is usually focused on corporate Bitcoin giants like MicroStrategy, CoinGecko's research shows that governments themselves rank among the top 10 Bitcoin holders globally. However, the methods and motivations behind their holdings vary widely.
The United States remains the largest governmental Bitcoin holder, albeit through a process different from private entities. Rather than purchasing Bitcoin, the U.S. government accumulates it primarily through criminal asset seizures. Recent liquidation efforts during the final phase of President Joe Biden's administration — part of a broader asset management strategy — have notably reduced federal holdings. In response, former President Donald Trump has proposed establishing a "Crypto Reserve," aiming not to purchase additional Bitcoin but to better organize and safeguard existing assets.
China, often viewed as crypto-hostile, is another major — yet less visible — player. The Chinese government seized nearly 200,000 BTC during a 2020 criminal crackdown and has since left its holdings untouched. This inactivity has kept China's Bitcoin presence largely under the radar.
Similarly, the United Kingdom maintains a passive approach, holding seized Bitcoin without active market participation. In contrast, Germany and Ukraine have fully liquidated their Bitcoin reserves over the past year. Germany's move was driven by the need to address a budget shortfall, while Ukraine sold its holdings to support its ongoing defense efforts.
Notably, except for Ukraine — which also received Bitcoin donations from abroad — all governmental Bitcoin was obtained through criminal seizures rather than open-market purchases.
El Salvador: The Lone Buyer
Among nations, El Salvador stands out as the only government actively expanding its Bitcoin portfolio. Despite an agreement to pause purchases to secure an International Monetary Fund (IMF) loan, the country has continued to acquire Bitcoin quietly. While this approach has faced some domestic criticism, it appears the IMF remains tolerant of the government's stance so far.
Bhutan, often cited for its involvement in Bitcoin mining, has sold nearly half of its mined Bitcoin in recent months, indicating a more cautious approach rather than aggressive accumulation.
The Fragile Future of Government Bitcoin Holdings
CoinGecko’s findings highlight that, despite impressive headline figures, government Bitcoin ownership is more fragile and politically sensitive than it may seem. In just one year, the number of Bitcoin-holding governments dropped from seven to five. A few political shifts — be it changes in leadership or fiscal strategy — could further reshape the landscape.
As Bitcoin continues to mature and global financial strategies evolve, the role of government-held crypto assets remains an open question, poised for potential change at any moment.