5 Countries With the Largest Bitcoin Holdings

• Blockchain Council
• December 06, 2024

Bitcoin, the first-ever cryptocurrency, has significantly changed how we think about finance and technology. Recently it crossed the $100K mark and that shows its growing potential. Several countries have taken steps to incorporate Bitcoin into their policies, viewing it as a tool for innovation, security, and even economic growth. 

Some nations have even turned to Bitcoin during crises, using it to manage financial stability or fund essential projects. Among these, five nations have emerged as the biggest holders of Bitcoin reserves, each with unique motivations.

The Five Nations Leading in Bitcoin Reserves:

• United States
• China
• United Kingdom
• Ukraine
• Bhutan

Let’s take a closer look at how and why these countries hold significant amounts of Bitcoin. And to know more about Bitcoin and how it’s reaching new heights everyday, consider getting certified with the Certified Bitcoin Expert™ program. 

United States: Leading the Way in Bitcoin Reserves

The United States holds the largest Bitcoin reserves, with an estimated 207,189 BTC, worth roughly $19.98 billion as of November 2024. These holdings come mainly from assets seized during criminal investigations.

How Did the U.S. Collect So Much Bitcoin?

• Silk Road Investigation: In 2020, U.S. officials seized over 69,370 BTC linked to the Silk Road, a darknet marketplace notorious for illegal activities like drug sales and money laundering.
• Recovery from Bitfinex Hack: In 2022, U.S. authorities retrieved 94,000 BTC that had been stolen during a 2016 hacking incident involving Bitfinex, a major cryptocurrency exchange.

These events show that although Bitcoin is often seen as difficult to track, law enforcement can follow the digital trail with the right tools and cooperation.

What’s Next for the U.S.?

The U.S. government has faced questions about what to do with its Bitcoin holdings. Some ideas include:

• Holding it as a strategic asset for long-term financial security.
• Selling parts of the reserves to fund public initiatives or reduce national debt.

In August 2024, President Donald Trump (then former) suggested the creation of a national Bitcoin reserve. He proposed that the government should retain these seized assets as a valuable resource. The idea sparked debate, with critics questioning whether such an approach aligns with traditional fiscal strategies.

China: Bitcoin from Seized Criminal Assets

China ranks second in Bitcoin reserves, holding around 194,000 BTC worth approximately $18.71 billion. Although the Chinese government has banned cryptocurrency for general use, these holdings come from crackdowns on fraud and scams.

The PlusToken Scandal

A significant portion of China’s Bitcoin reserves came from the PlusToken scam, a Ponzi scheme that defrauded investors of over $2 billion in cryptocurrencies. In 2019, authorities confiscated a variety of assets, including Bitcoin, Ethereum, and other digital tokens.

Contradictions in Policy

China’s policies seem at odds with its Bitcoin reserves. On one hand, the government restricts cryptocurrency trading and mining from 2021 citing financial stability concerns. On the other hand, it retains large amounts of Bitcoin, likely for the following reasons:

• Suppress public crypto use to avoid financial instability.
• Retain seized assets for strategic purposes.

United Kingdom: Bitcoin from Crime Investigations

The United Kingdom comes in third, with around 61,000 BTC, valued at $5.88 billion. Like the United States, the UK has built its reserves through the confiscation of digital assets during investigations into financial crimes.

Major Seizures in the UK

In 2018, authorities in the UK seized Bitcoin worth millions of dollars while cracking down on fraudulent investment schemes. Over time, the value of these confiscated assets has surged, prompting discussions on how best to handle them.

How the UK Plans to Use Bitcoin

The UK government has weighed different options for managing its Bitcoin reserves:

• Converting seized Bitcoin into traditional currency to support public projects.
• Keeping Bitcoin as a long-term investment, betting on future price increases.

Ukraine: Bitcoin as a Lifeline

Ukraine holds 46,351 BTC, valued at $4.1 billion. These reserves include government-owned Bitcoin and donations received during the ongoing conflict with Russia.

Using Bitcoin During Crisis

After Russia invaded in 2022, Ukraine turned to Bitcoin for financial support. The government and various organizations received over $225 million in Bitcoin donations, which were used to:

• Support defense initiatives.
• Provide humanitarian aid to citizens displaced by the war.

Legal Recognition of Bitcoin

Ukraine legalized Bitcoin in 2021, aiming to attract foreign investment and reduce corruption. This move has shown how cryptocurrency can play a vital role in maintaining economic stability during challenging times.

Bhutan: A Quiet but Big Bitcoin Holder

Bhutan, a small Himalayan kingdom, holds 13,011 BTC, worth roughly $700 million. Unlike other countries on this list, Bhutan actively mines Bitcoin and has taken a proactive approach to using digital assets for economic growth.

How Bhutan Accumulated Bitcoin

• Hydropower Advantage: Bhutan uses its vast hydropower resources to mine Bitcoin. The operations are overseen by Druk Holding & Investments, a state-owned enterprise.
• Diversifying the Economy: By mining and investing in Bitcoin, Bhutan aims to reduce its reliance on traditional industries such as agriculture and tourism.

Economic Impact

Bhutan’s digital asset strategy has already shown positive results:

• GDP Growth: The country’s GDP grew by 4.4% in 2024 and is projected to rise further in 2025.
• Innovation: Bhutan’s use of Bitcoin has positioned it as a leader in financial technology within South Asia.

How These Countries Stand Out

Each nation’s Bitcoin reserves tell a different story:

• United States: Primarily holds Bitcoin seized during crime investigations, with ongoing debates about its future use.
• China: Retains Bitcoin confiscated from scams while maintaining strict control over cryptocurrency use within its borders.
• United Kingdom: Gained Bitcoin through financial crime investigations and is considering options for its management.
• Ukraine: Uses Bitcoin donations to bolster resilience during conflict and support its economy.
• Bhutan: Mines Bitcoin to diversify its economy and reduce reliance on traditional industries.

Broader Implications of Government Bitcoin Reserves

As governments build up Bitcoin reserves, it becomes clear that digital currencies are playing a bigger role in global finance. However, this also raises some key questions:

• Market Influence: Large-scale buying or selling of Bitcoin by governments could lead to price fluctuations.
• Security Concerns: Protecting these digital reserves requires strong cybersecurity measures.

Despite these challenges, the growing interest in Bitcoin among nations highlights its potential as a financial tool. However, to make the most of your Bitcoin holdings, you must follow expert guidelines. For that, you can enroll into the Certified Cryptocurrency Trader™ (CCT) program and learn directly from industry experts.

Final Thoughts

The countries leading in Bitcoin reserves each have unique reasons for holding digital assets, whether it’s fighting crime, driving economic growth, or addressing crises. These strategies reflect the broader role Bitcoin is beginning to play in global finance. As the cryptocurrency landscape evolves, more nations may follow suit, further cementing Bitcoin’s position as an important financial asset.