Bitcoin Reserve Race Expands as Governments Split on BTC Strategy

TLDR:

• The US now controls roughly 328,000 BTC after years of crypto-related criminal asset seizures.
• Bhutan reduced sovereign Bitcoin holdings to fund development spending during 2026.
• China reportedly sold most seized BTC holdings through third-party liquidation channels.
• El Salvador faces IMF restrictions despite pioneering sovereign Bitcoin accumulation efforts.

Governments across major economies now control significant Bitcoin holdings through seizures, mining, and direct purchases. The shift has intensified debate around sovereign Bitcoin reserve strategies and long-term crypto market structure. 

Data shared by Mercek on X outlined how countries now approach BTC through sharply different policies. The United States currently leads sovereign Bitcoin holdings, while China and Bhutan continue reducing their exposure.

Bitcoin Reserve Strategies Divide Global Crypto Market

The United States holds roughly 325,000 to 328,000 BTC from criminal seizure cases. Those holdings came from Silk Road, Bitfinex, James Zhong, and related investigations.

Washington previously auctioned seized Bitcoin regularly. That approach changed after President Donald Trump signed an executive order in March 2025.

The proposed American Reserve Modernization Act, introduced on May 21, would formalize the reserve structure. The bill carries bipartisan backing and 16 co-sponsors, according to details shared by Mercek.

The legislation would lock federal Bitcoin holdings for 20 years. It would also authorize Treasury purchases of 200,000 BTC annually for five years.

Current US sovereign Bitcoin holdings carry an estimated value near $26 billion at current market prices. The proposal targets a reserve of one million BTC if Congress approves the measure.

The United Kingdom also controls a large Bitcoin position through criminal seizures. Authorities seized around 61,000 BTC during a 2021 money laundering investigation tied to a Chinese fraud network.

The UK government still debates whether to sell or retain the assets. Current estimates place the value near £5 billion.

El Salvador remains the first country to adopt Bitcoin as legal tender. President Nayib Bukele continued public BTC purchases after the 2021 adoption framework.

Mercek estimated El Salvador’s holdings between 6,000 and 7,500 BTC. However, IMF loan conditions now restrict further sovereign Bitcoin accumulation.

China and Bhutan Reduce Bitcoin Holdings Through Sales

Bhutan followed a different Bitcoin strategy built around hydroelectric mining. The country’s sovereign wealth fund began mining BTC in 2019 using renewable energy infrastructure.

At its peak, Bhutan controlled around 13,000 BTC. That figure represented roughly 18% of national GDP, based on the figures cited in the X analysis.

Bhutan changed direction during 2026. Government-linked wallets reportedly reduced holdings from roughly 6,000 BTC to around 3,200 BTC this year.

The country now uses Bitcoin liquidations to support domestic development spending. The strategy contrasts sharply with the US accumulation model.

China also reduced its Bitcoin exposure after years of enforcement seizures. Earlier estimates linked China to nearly 190,000 BTC from the PlusToken case.

Remaining holdings near 15,000 BTC. Local governments reportedly sold large portions through third-party channels over several years.

China banned crypto trading and mining activities domestically. Despite that position, enforcement actions temporarily made the country one of the largest sovereign Bitcoin holders.

The UAE and Kazakhstan also maintain Bitcoin exposure through mining-related operations. Mercek noted Kazakhstan holds around 3,500 BTC linked to post-2021 mining migration trends.

The UAE exposure reportedly comes through Citadel, a mining company linked to UAE Royal Group through IHC. Neither country announced a formal Bitcoin reserve policy.

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