Key Takeaways:
Over the past 10 years, the U.S. government sold 195,000 BTC, generating only $366 million.
If held, these Bitcoin holdings would now be worth $17.59 billion at current market prices.
David Sacks, White House Director of AI & Cryptocurrency, criticizes the lack of a long-term strategy for Bitcoin reserves.
$17 Billion Lost: U.S. Government’s Bitcoin Liquidation Costs Taxpayers Heavily
On March 6, David Sacks, the White House’s Director of AI and Cryptocurrency, revealed that the U.S. government has offloaded approximately 195,000 BTC over the past decade, missing out on more than $17 billion in potential profits.
"This is the price that American taxpayers pay for not having a long-term strategy," Sacks stated on social media.
According to HTX market data, Bitcoin is currently trading at $90,245, meaning 195,000 BTC would now be valued at approximately $17.59 billion—a staggering 47x increase from the $366 million the government actually realized from sales.
Why Did the U.S. Sell Its Bitcoin Holdings?
The U.S. government frequently auctions seized Bitcoin, typically obtained from criminal investigations, Silk Road cases, and darknet operations. Historically, these sales were conducted at significantly lower prices, failing to account for Bitcoin’s long-term growth trajectory.
Past Bitcoin liquidations include:
2014: The U.S. Marshals Service sold 30,000 BTC seized from Silk Road for $19 million (now worth $2.7 billion).
2021: The DOJ sold 69,370 BTC linked to Silk Road for $1 billion (now worth $6.2 billion).
2023: The U.S. government sold another 9,861 BTC, valued at $215 million, from Silk Road-related seizures.
