Recent Bitcoin news has been dominated by speculation about the U.S. government’s massive cryptocurrency holdings. Blockchain intelligence firm Arkham has now provided crucial clarity by tracking at least 198,000 BTC linked to federal agencies, putting liquidation rumors to rest.
Bitcoin Reserve Mystery Solved by Arkham Tracking
Arkham’s blockchain analysis revealed that the U.S. government’s Bitcoin reserve remains intact, with 198,000 BTC ($24 billion) held across addresses connected to the FBI, DEA, DOJ, and U.S. Attorney offices. This finding came after a FOIA request showed only 28,988 BTC in U.S. Marshals Service custody, sparking liquidation fears.
Why the U.S. Bitcoin Reserve Matters
- Largest known sovereign Bitcoin stockpile globally
- Surpasses UK’s £2 billion in seized crypto assets
- Bigger than Bhutan’s government-backed mining reserves
Transparency Challenges in Government Bitcoin Holdings
Despite Arkham’s tracking providing temporary relief, concerns remain about the lack of cryptographic proof for these reserves. The U.S. government currently relies on:
| Method | Limitation |
|---|---|
| Spreadsheet reporting | No cryptographic verification |
| Coinbase Prime custody | Private keys held by third party |
| FOIA disclosures | Potentially outdated information |
The Path to Cryptographic Proof for Bitcoin Reserves
Experts suggest the Treasury could implement:
- Public reserve address announcements
- On-chain transaction anchoring
- Merkle tree verification methods
- Regular cryptographic audits
These measures would provide transparency without compromising sensitive data.
FAQs About the U.S. Bitcoin Reserve
Q: How much Bitcoin does the U.S. government actually hold?
A: Arkham’s tracking shows at least 198,000 BTC across various federal agencies.
Q: Why was there confusion about the Bitcoin reserve?
A: A FOIA request initially showed only 28,988 BTC in Marshals Service custody, creating discrepancy with White House figures.
Q: What’s being done to improve transparency?
A: An executive order mandated an audit and creation of a Treasury digital assets office, though results are pending.
Q: How does the U.S. compare to other governments in crypto holdings?
A: The U.S. holds the largest known government Bitcoin reserve, surpassing the UK and Bhutan.
