The US government has transferred 17,795 Bitcoin, worth approximately $1.5 billion, over the past three days. As the world’s largest known sovereign holder of Bitcoin, any movement of its holdings attracts attention. The key question is what Washington intends to do with these coins.
On-chain trackers like Arkham Intelligence and Galaxy Research observed that government-linked wallets sent about 9,261 BTC, valued at around $770 million, to Coinbase Prime between October 7-8, 2026. These transfers occurred in multiple batches, a common practice for large holders moving funds between custody arrangements. A smaller batch of 833.6 BTC, worth roughly $71.6 million, also went to Coinbase, accompanied by approximately 40,285 BNB, valued at about $31.6 million.
The US government did not acquire its Bitcoin through purchase but through confiscation, primarily from sources like the Bitfinex hack, Prince Group forfeitures, and Silk Road-related seizures. Estimates suggest the US holds between 319,000 and 325,000 BTC, worth roughly $27 billion to $28 billion, making it the largest sovereign holder of Bitcoin. In March 2025, an executive order prohibited sales from the Strategic Bitcoin Reserve, except for specific circumstances such as victim compensation.
While no official announcement has confirmed plans to liquidate these coins, the transfers to Coinbase Prime have sparked speculation. The victim compensation exception could require moving or converting assets, even under the no-sale policy. Additionally, not all seized Bitcoin follows the same rules, as some are still tied up in legal processes. The transfers are likely routine custody management rather than imminent sales, but any significant liquidation could impact market supply and sentiment.