Bitcoin is increasingly moving from private portfolios to public balance sheets. A new report from River indicates that governments are no longer passive observers of the market. Today, 23 countries hold BTC in some capacity, marking a meaningful expansion of state-level participation.
According to River, these holdings stem from asset seizures, direct purchases, state-backed mining operations, and sovereign wealth allocations. Government exposure now spans North America, Europe, the Middle East, Asia, Africa, and Latin America — a sign that Bitcoin adoption has reached multiple layers of state infrastructure.
The United States holds the largest sovereign position at 328,372 BTC, primarily accumulated through criminal asset confiscations. Meanwhile, the United Kingdom follows with 61,245 BTC. The United Arab Emirates holds 30,382 BTC via sovereign wealth and mining-linked strategies. China, despite its domestic mining ban, is estimated to control 15,000 BTC from earlier seizures.
El Salvador remains the only country to designate Bitcoin as legal tender, with government reserves totaling 7,514 BTC acquired through open-market purchases. Bhutan holds 5,884 BTC tied to state-backed mining operations, illustrating how smaller economies are experimenting with alternative accumulation strategies.
As of Dec. 31, 2025, governments collectively hold approximately 432,000 BTC — about 2.1% of the total supply. Individuals remain the dominant holders, controlling 14.01 million BTC, or 66.7% of the circulating supply. Funds and ETFs account for 1.49 million BTC, while businesses hold 1.45 million BTC. Retail ownership continues to anchor the market, even as institutional and sovereign exposure expands.
Meanwhile, River reports that 34 countries now control more than 0.1% of the global hashrate, while 12 countries exceed 1%. Compared to previous cycles, mining activity is significantly more geographically dispersed, reducing the concentration risk once associated with a small number of jurisdictions.
Several structural forces are driving sovereign engagement:
Beyond governments, institutional participation continues to broaden. Hedge funds, asset managers, pension funds, endowments, insurance firms, and sovereign wealth vehicles report increasing allocations. Billions of dollars in Bitcoin exposure now sit within traditional financial frameworks.
In 2025, North America recorded 6,535 merchants accepting bitcoin, an increase of 1,299 from the previous year. Europe leads slightly with 6,745 merchants. Activity on the Lightning Network surged, with River estimating a 300% rise in transaction volume during the year. Exchange integrations for Lightning deposits and withdrawals contributed to higher average transaction sizes.
Regulatory developments further support adoption. Thirty-four countries have approved Bitcoin ETFs or ETPs. Others have legalized mining, clarified tax treatment, or authorized banks to provide custody services. These measures create clearer channels for institutional and sovereign capital participation.
Introduced in the aftermath of the 2008 financial crisis, Bitcoin was originally framed as an alternative to state-controlled monetary systems. Seventeen years later, it is increasingly held by those very states. What began as a decentralized experiment now occupies balance sheets across 23 governments — a shift that marks a new phase in Bitcoin’s structural evolution.
