US government controls 195,234 Bitcoin worth over $16 billion

As of March 12, the U.S. government controls 195,234 Bitcoin, valued at more than $16 billion, according to a new Nansen report.

The U.S. government's crypto portfolio has grown to an impressive size, with 195,234 Bitcoin (BTC) in its possession as of March 12, according to a recent report by blockchain analytics firm Nansen.

At current market prices, the government's Bitcoin stash is valued at over $16 billion.

In addition to Bitcoin, the government's crypto portfolio includes $4.6 million worth of Ethereum (ETH), stablecoins such as USDC, and yield-bearing assets like DAI and AUSDC_V2.

However, the government's crypto holdings could expand significantly if a newly proposed bill is passed.

A House bill introduced by Rep. Nick Begich, R-Alaska, on March 9 aims to bring the U.S. one step closer to owning 1 million BTC.

The House Strategic Bitcoin Bill (H.R. 2414) would mandate that the government gradually acquire 200,000 BTC annually for the next five years. This would imply roughly 5% of Bitcoin's total supply.

If passed, the dollar value of the purchases at today's market price would be just shy of $110 billion.

The bill also proposes investing a portion of the government's foreign currency reserves, typically held in U.S. Treasury bonds, into Bitcoin.

Implications for the Market

If the bill passes, the U.S. government's Bitcoin holdings would surpass even the estimated 1.1 million BTC attributed to Bitcoin's mysterious creator, Satoshi Nakamoto, making the government the largest known Bitcoin holder.

This level of ownership would provide the government with significant leverage over market liquidity and price stability. With such a large crypto holding, the government could exert substantial influence over market dynamics, potentially driving up Bitcoin's value.

However, this degree of centralization could have implications for Bitcoin, which is often praised for its decentralized nature.

Large-scale government acquisitions could be seen as shifting the balance of power in the cryptocurrency market, possibly making the government a price setter in the Bitcoin market which some argue stands against the original ethos of cryptocurrency.