Global Governments Shift Bitcoin Strategies Amid Diverging Policies and Pressures

Collectively, by April 2025, governments across the world held 463,741 Bitcoin—about 2.3% of the total in circulation.

This is a striking decrease from the 529,591 BTC held in July 2024, and represents a decidedly international and state-level trend in the management of cryptocurrency reserves. From 2024 to 2025, the number of BTC held by global governments fell by 65,850 coins; from 2023 to 2024, it had only fallen by 1,052 coins.

This shift reflects a strategy that is becoming increasingly fragmented on a global scale concerning Bitcoin. Whereas some nations are ramping up their holdings of this digital asset as part of a long-term, next-generation, and often secretive plans for an overhauled global financial architecture, other nations have been cashing in on portions, or even all, of their Bitcoin reserves for motives ranging from economic necessity to deadpan ideological opposition to what they once lauded as a revolutionary new kind of money.

Two contrasting paths have emerged among governments: accumulation and divestment. Countries like El Salvador and Bhutan are accumulating Bitcoin, seeing the digital asset as a way to achieve financial independence. They are buying it in large quantities and integrating it into their monetary systems.

El Salvador is, in fact, buying one Bitcoin per day, according to a policy instituted by the president, Nayib Bukele. By most recent counts, Bukele’s country of 6.15 million people is holding about 6,135 BTC, which is a respectable haul even for a nation-state.

Taking a different but equally strategic route, Bhutan is now leveraging its abundant hydropower resources to mine for clean-energy Bitcoin. The Himalayan kingdom now holds 8,594 BTC worth around $795 million. This highlights how nations can integrate cryptocurrency strategies into existing environmental and economic infrastructures.

Conversely, nations such as the United States, Germany, and Ukraine have been divesting themselves of significant parts of their Bitcoin holdings. By far the most notable instance occurred with Germany when it sold off its entire stash of 46,359 BTC—equivalent to approximately $3.9 billion—in April 2024. This sale precipitated a short-term 15.7% decline in Bitcoin’s market price, demonstrating that the divestiture of a large Bitcoin holding by a government is capable of resulting in sizable price changes.

Ukraine decided to liquidate its total reserve of 256 BTC, all of which had been donated to fund military and humanitarian efforts. As the nation’s very existence hung in the balance, officials chose to prioritize cash over crypto, holding BTC in reserve despite its steep price trajectory since autumn 2020.

The United Kingdom, with 61,000 BTC (about $5.6 billion), is left in limbo. The BTC it holds, mainly seized from criminal enterprises, has apostolic authority that assigns it no immediate future use. This is the picture of an indecisive policy.

Among national governments, the United States retains the most Bitcoin, holding 198,012 BTC—valued at nearly $18.3 billion—as of January 2023. U.S. authorities have dialed down their Bitcoin holdings over the past year but have indicated they intend to maintain a strategic reserve of sorts. Some call it a “Digital Fort Knox.” Others just think it sounds cool. This reserve would be positioned to serve as a hedge against future financial instability. Alternatively, the reserves might be used as leverage in negotiations over the digital economy when the next chance presents itself.

At the same time, China maintains the second-largest national Bitcoin reserve, with 194,000 BTC, worth $17.6 billion. These assets were predominantly amassed during the authorities’ 2019 takedown of the PlusToken Ponzi scheme, from which a large haul of digital assets was seized. Even though there has been much speculation internationally, China has not announced any plans to cash out on its Bitcoin bounty.

Different methods exist for how governments have acquired Bitcoin: direct purchases, mining, asset seizures from criminal investigations, and even public donations. These methods of acquisition influence how each country often views and manages its Bitcoin holdings. For instance, assets gained through seizure tend to be somewhat disposable, whereas assets that were mined or purchased are more likely to be viewed as a reserve.

This split shows a broader policy divide. Some nations, especially those with few pathways into the world of traditional finance or a strong taste for innovation, see Bitcoin as what Treasury Secretary Janet Yellen once termed a “long-term store of value,” akin to gold. Other nations, especially the richer ones with well-structured monetary systems, see Bitcoin’s value as purely speculative, opting instead to regulate it in a way that treats it almost like a nuclear bomb: very dangerous, but in these particularly perilous times, useful to threaten our adversaries with.

Countries around the world are setting their rules and regulations for Bitcoin. The decisions they make will not only determine how Bitcoin fits into the global financial system but also affect the entire ecosystem of digital assets, especially as all these countries start to talk to one another. Will Bitcoin be integrated and accepted like gold into the next global financial architecture? Or will it be excoriated as an unstable and speculative substitute for real cash? That’s one big, undecided question at the moment.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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