The United States government has now surpassed MicroStrategy and Tesla as one of the largest holders of Bitcoin, with over 205,000 BTC in its possession, Dunedataon March 27 shows. This figure is slightly over 1% of the current circulating supply and is worth $5,734,743,113 at spot rates.
United States Government Seizes Billions Worth Of Bitcoin
According to trackers, MicroStrategyholds132,500 BTC while Tesla owns 10,725 BTC, less than what the United States government controls.
Earlier, authorities held at least 215,000 BTC but sent 9,860 BTC to Coinbase in early March 2023. Still, this leaves the government with a massive stash of coins they have seized in separate events over the years.
In the first instance, the governmentseized69,369 BTC from a person they dubbed “Individual X” linked to the Silk Road marketplace. Individual X’s address, known as “1HQ3,” was confirmed to have originated from the Silk Road through blockchain analysis.
Reports indicate that federal law enforcement seized the funds on November 3, 2020, after seeking forfeiture with the courts. “Individual X” agreed to forfeit all assets as part of a deal with the government.
In the second instance, 94,636 BTC directlylinkedto the 2016 hack of the cryptocurrency exchange Bitfinex were seized by United States authorities.
Ilya Lichtenstein and his wife, Heather Morgan, were also arrested in connection with the case. They allegedly conspired to launder 119,754 BTC in over 2,000 transactions within five years.
The United States Department of Justice (DoJ) said this was the “largest cryptocurrency seizure to date,” valued at more than $4 billion at spot rates.
Thethird caseinvolved James Zhong, who pleaded guilty to unlawfully obtaining over 50,000 Bitcoin from the Silk Road marketplace.
On November 9, 2021, the DoJ searched Zhong’s house in Gainesville, Georgia, and seized more than 51,326 BTC, valued at over $3.36 billion.
Increasing Success In Recovery Rates
While Bitcoin is pseudonymous, it can also be abused by malicious agents and used as a tool for money laundering and terrorist financing. And the government’s increasing Bitcoin holdings reflect the authorities’ success in dealing with bad actors and providing a reprieve for victims.
The seizure of thousands of Bitcoin by governments and law enforcement agencies, especially in the United States, points to the work done behind the scenes to protect users and brings violators to justice.
While authorities register success, regulations are being developed to streamline processes and cushion investors against rogue agents, especially as crypto becomes more mainstream.
As crypto and Bitcoin are adopted, major banks, including JP Morgan and Goldman Sachs, have startedofferingcryptocurrency trading services to their clients.
Known Bitcoin reserves held by governments account for 2.7% of the total 21 million supply of bitcoins, with the largest being the US Government with over 210,000 bitcoins worth more than $13bn at the time of writing.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
As of the latest available information in 2024, the United States is considered to be the country that owns the most Bitcoin — according to various reports, it holds over 210K BTC. This accumulation is primarily due to legal seizures rather than direct purchases. US government owns over 210K BTC as of 2024.
Collectively, public companies own more than 321,224 BTC, equal to 1.52% of the total supply. Microstrategy, led by Michael Saylor, holds more bitcoin than any other public company. Microstrategy has acquired 226,331 BTC, which represents roughly 1.07% of the total supply.
Summary: As of 2024, there are about 420 million cryptocurrency users globally. Of these, approximately 1.5 million individuals possess more than 1 Bitcoin, which is just 0.36% of all cryptocurrency users.
Changpeng Zhao, better known as CZ, is the founder and CEO of Binance, the world's largest cryptocurrency exchange by trading volume. His foray into Bitcoin began when he sold his house in 2014 to buy Bitcoin, a move that underscored his conviction in crypto's potential.
The person who holds the most bitcoin is believed to be Satoshi Nakamoto, the unknown figure behind its creation. Bitcoin has been a business interest for many years, but following the approval of spot bitcoin ETFs in January 2024, businesses accounted for the most bitcoin held.
Cryptocurrency awareness and ownership rates have increased to record levels: 40% of American adults now own crypto, up from 30% in 2023. This could be as many as 93 million people. Among current crypto owners, around 63% hope to obtain more cryptocurrency over the next year.
Bitcoin is not controlled by any single group or person. Instead, it is governed by multiple stakeholders — including developers, miners, and users. Developers write the code that makes Bitcoin run; miners validate transactions; and users put the software to work by trading, transacting, holding, and more.
F rom the increasingly ferocious federal crackdown on the cryptocurrency business, it might appear the U.S. government cannot stand digital currencies. Yet there is a love-hate dynamic: the Treasury is sitting on a stash of 207,189 bitcoin, worth $5 billion, by far the largest such state-owned hoard.
According to MicroStrategy's latest financial reports the company's total debt is $3.61 B. A company's total debt is the sum of all current and non-current debts.
Digital Assets: As of March 31, 2024, the carrying value of the Company's digital assets (comprised of approximately 214,278 bitcoins) was $5.074 billion, which reflects cumulative impairment losses of $2.461 billion since acquisition and an average carrying amount per bitcoin of approximately $23,680.
The Securities and Exchange Commission regulates assets it determines to be securities. It doesn't yet regulate Bitcoin, but it is regulating investments or derivatives related to Bitcoin.
Bitcoin, unlike traditional fiat currencies, is not backed by a physical commodity like gold or silver, nor by the promise of a government or central bank. Instead, Bitcoin's value is backed by several key factors that ensure its security, scarcity, and widespread acceptance.
Investment firms like Grayscale, BlackRock and Fidelity, are pouring billions of dollars into buying the volatile digital asset. In the last few weeks, these powerful institutions have become so called 'Bitcoin whales'. Because of Bitcoin's system there will only ever be 21 million bitcoins.
The IRS treats cryptocurrencies as property for tax purposes, which means: You pay taxes on cryptocurrency if you sell or use your crypto in a transaction, and it is worth more than it was when you purchased it. This is because you trigger capital gains or losses if its market value has changed.
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