The Missed Opportunity: US Government’s $17 Billion Loss from Bitcoin Liquidation
The US government may have missed out on a staggering $17 billion by liquidating its Bitcoin holdings instead of holding them long-term, according to White House AI and Crypto Tzar David Sacks.
Analysis of Bitcoin Liquidation
- 195,091.75 BTC sold between June 2014 and March 2023
- Total sales proceeds approximately $366.49 million
- Potential value in March 2025 estimated at $17.6 billion
Impact of Short-Term Approach
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.
A Missed Profit
David Sacks argued that this short-term approach had significantly cost American taxpayers. He pointed out the lack of a long-term Bitcoin strategy, highlighting how poor timing in asset liquidation had reduced potential returns.
Current Bitcoin Holdings
Despite the past 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.
Future Strategy
David Sacks’ comments come as the US government explores the creation of a crypto reserve, including Bitcoin, Ethereum, XRP, and Solana. This move suggests a shift in strategy, possibly recognizing the long-term value of digital assets.
