David Sacks: The US Government Lost $17 Billion from Selling Bitcoin
A Costly Mistake in Bitcoin Strategy
David Sacks, Donald Trump's special adviser on cryptocurrency, has criticized the U.S. government for its short-sighted Bitcoin strategy, revealing that the country has lost over $17 billion due to early Bitcoin sales.
According to Sacks, over the past ten years, the U.S. government has sold more than 195,000 BTC, receiving only $366 million in return. If these Bitcoin holdings had been retained, they would now be worth over $17 billion—a staggering missed opportunity for American taxpayers.
"This is the cost of the U.S. government's failure to implement a long-term Bitcoin strategy. These decisions have resulted in massive financial losses," Sacks stated on social media platform X.
The government's Bitcoin sales primarily stemmed from confiscated assets, including BTC linked to darknet marketplaces like Silk Road.
The largest historical sales include:
| Date | BTC Sold | Price Per BTC | Total Sale Amount | Current Value (BTC @ $90,000) |
|---|---|---|---|---|
| June 2014 | 29,657 BTC | $632 | $18.7 million | $2.7 billion |
| Dec 2014 & Mar 2015 | 50,000 BTC | $650 | $32.5 million | $4.5 billion |
| March 2023 | 9,861 BTC | $21,800 | $215 million | $887 million |
Total loss: $17 billion due to selling BTC too early.
Despite these sales, the U.S. government still holds a significant Bitcoin portfolio, including:
- 198,109 BTC (worth $17.72 billion at current prices)
- $124 million in ETH
- Stablecoins (USDT, USDC, DAI)
- BNB and TRX holdings
According to Arkham Intelligence, the total U.S. crypto holdings are valued at $18.12 billion.
The Case for a U.S. Bitcoin ReserveSacks argues that this loss underscores the need for a Bitcoin reserve strategy. Instead of liquidating assets prematurely, the government should:
- Retain Bitcoin as a strategic reserve asset, similar to gold.
- Leverage BTC for financial stability instead of selling at low prices.
- Recognize Bitcoin as an appreciating long-term asset, rather than just liquidating confiscated holdings.
"Bitcoin has proven to be the most profitable and safest store of value. No hacker has ever broken its security, and it continues to outperform traditional assets," Sacks said.
His remarks align with recent discussions about the U.S. potentially creating a Bitcoin national reserve, as suggested by Mike Novogratz and Matt Hougan.
Final Thoughts: A Billion-Dollar Policy MistakeThe U.S. government's decision to sell Bitcoin early has cost taxpayers billions. If a Bitcoin reserve strategy had been implemented earlier, the government could have significantly increased its wealth instead of realizing early losses.
With $17.7 billion in BTC still in government possession, the U.S. still has an opportunity to change course and treat Bitcoin as a strategic national asset—before making another costly mistake.
