US Government Misses $17 Billion Bitcoin Profit Opportunity

The US government has been criticized for missing out on a potential $17 billion profit by liquidating its Bitcoin holdings instead of holding them long-term. This revelation comes from tech investor and Crypto Czar David Sacks, who highlighted the financial implications of the government's short-term approach to Bitcoin sales.

According to an analysis by an AI chatbot named Grok, the federal authorities sold Bitcoin on multiple occasions between June 2014 and March 2023, totaling 195,091.75 BTC. The proceeds from these transactions amounted to approximately $366.49 million, with prices varying at different points. However, if the government had retained these assets until March 2025, their estimated value would have climbed to $17.6 billion at Bitcoin’s current price of $90,204 per BTC. This suggests a missed profit of over $17.2 billion.

A significant portion of these Bitcoin sales came from confiscated assets, including those tied to the infamous Silk Road case. The varying timing of these liquidations played a key role in limiting potential returns. Sacks argued that this short-term approach had significantly cost American taxpayers, pointing out the lack of a long-term Bitcoin strategy and how poor timing in asset liquidation had reduced potential returns.

Despite these sales, data from BitcoinTreasuries shows that the US government still holds 198,109 BTC, valued at approximately $17.80 billion based on current market prices. This indicates that the government still has a substantial amount of Bitcoin in its reserves, which could potentially yield significant profits if held long-term.

Sacks' comments come as the Donald Trump-led US government explores the creation of a crypto reserve, which would include Bitcoin, Ethereum, XRP, and Solana. This move hints at a shift in strategy, possibly recognizing the long-term value of digital assets. The potential creation of a crypto reserve could signal a more strategic approach to managing the government's digital asset holdings, aiming to maximize long-term profits and minimize the risks associated with short-term liquidations.