In 2025, government Bitcoin reserves were shaped by various accumulation methods: confiscations, mining, and state purchases. According to Arkham Intelligence, five countries lead with notable BTC balances, each with its own story behind these holdings. Below is an analysis of who holds how much and how these reserves were formed.
How Governments Accumulated Bitcoin in 2025
The three main mechanisms for increasing state Bitcoin reserves are confiscations, mining, and operations through government treasuries. Confiscations usually result from law enforcement actions targeting criminal proceeds, mining is conducted by state-owned or controlled companies, and government purchases reflect treasury or sovereign fund decisions.
Platforms like Arkham Intelligence track on-chain data and link individual wallets to government entities, enabling estimates of state reserves. In practice, large confiscations have significantly altered portfolios: a major seizure quickly boosted the US BTC holdings.
Top 5 Countries by Bitcoin Reserves in 2025
The USA tops the list with approximately 328,372.32 BTC in government holdings; a significant portion of this amount came from a large 127,271 BTC confiscation related to the pursuit of a foreign national. For more on the role of private and corporate reserves in the US, see the article on US corporate reserves, which discusses other BTC accumulation strategies.
The United Kingdom ranks second with 61,245.01 BTC—these funds were obtained after a 2018 operation where over 61,000 BTC were seized from Jian Wen and Zhimin Qian; the government gained full access to the funds in 2021. This case illustrates how law enforcement actions convert into state reserves.
El Salvador holds third place with 7,509.37 BTC; it remains the only country worldwide to recognize Bitcoin as legal tender. The government states that part of its reserves was formed through treasury allocations, although observers have debated the nature of some transaction records.
The UAE holds 6,568.30 BTC, linked to mining activities via Citadel Mining. Notably, Citadel Mining is 85% owned by UAE Royal Group, providing a clear ownership chain between the mining company and the conglomerate controlled by the ruling family of Abu Dhabi.
Bhutan rounds out the top five with about 5,984.54 BTC; the country's investments are managed by Druk Holdings, a sovereign fund and commercial entity. Reports note that Bhutan reduced some of its holdings in 2025 compared to earlier volumes.
Methods of Bitcoin Acquisition by Governments
Confiscations
Confiscations remain a way for governments to acquire large amounts of BTC without direct market purchases. The examples of the US and UK show that legal proceedings and raids can result in substantial transfers of BTC into state ownership, instantly increasing official balances.
Mining
Some countries accumulate BTC through mining—either via their own infrastructure or controlled companies. In the cases of the UAE and Bhutan, mining is the primary method of building reserves, with results reflected in public on-chain records.
Government Investments and Treasury Operations
Finally, some governments allocate funds from treasuries or sovereign wealth funds to purchase Bitcoin as part of financial strategies. El Salvador’s example shows that such decisions can coincide with unique legal statuses for BTC within the country.
Why This Matters
For a miner in Russia operating from one to a thousand machines, this data helps understand who holds what volume of BTC globally. If large state holdings form through confiscations or mining, this mainly reflects the source of BTC inflows rather than immediate changes in local mining market conditions.
It is also important to monitor news about confiscations and major players’ actions: large transfers or sales from government wallets can temporarily increase price volatility, while regulatory decisions in different jurisdictions affect the legal and operational environment for mining.
What To Do?
- Ensure the security of your keys and wallets: regularly back up, use hardware wallets, and store recovery phrases securely.
- Monitor on-chain tracking and news: platforms like Arkham help spot large movements, useful for assessing market activity.
- Diversify risks: avoid keeping all funds in one wallet; distribute income between hot and cold storage when possible.
- Consider local regulations: comply with reporting and privacy requirements to avoid issues during audits or inquiries by authorities.
- Maintain mining infrastructure security: update software, control access, and have contingency plans for power outages or network security incidents. Readers interested in risks can refer to the article on security threats.