North Korea’s $1.14 Billion Bitcoin Stash Puts It Among the Top 3 Government Holders

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North Korea has quietly climbed the ranks to become one of the largest government holders of Bitcoin, surpassing even crypto-friendly nations like El Salvador and Bhutan. This is a major concern for crypto investors as Bitcoin in weak hands can raise the concern of liquidity, followed by a massive market crash if they try to sell these crypto assets to manage their countries’ financial position.

The surge comes after the Lazarus Group—a state-backed hacking syndicate—pulled off a massive cyber heist, stealing over $1.4 billion in crypto from Bybit on February 21, 2025. A large portion of the loot, initially in Ethereum, was later converted into Bitcoin, swelling North Korea’s holdings to 13,562 BTC, valued at over $1.14 billion.

The U.S. and North Korea: A Tale of Two BTC Strategies

While North Korea has been quietly stacking Bitcoin through illicit means, the U.S. is taking a more structured approach. President Trump’s Executive Order on March 6, 2025, officially launched the Strategic Bitcoin Reserve (SBR), positioning the U.S. as the largest government Bitcoin holder with 198,109 BTC worth a staggering $16.71 billion.

As per Arkham data , the U.K., sitting in second place with 61,245 BTC ($5.17 billion), has accumulated its stash through criminal seizures rather than direct accumulation. Meanwhile, Bhutan’s Druk Holdings manages 10,635 BTC ($897.6 million), and El Salvador, one of the first nations to adopt Bitcoin as legal tender, holds 6,117 BTC ($516.11 million).

Is Kim Jong Un Playing the Digital Gold Game?

The timing of North Korea’s Bitcoin accumulation—coinciding with the U.S. unveiling its SBR—raises eyebrows. There is a growing possibility that Kim Jong Un is making a strategic play in the digital asset space, using stolen Bitcoin as a shadow reserve.

Unlike traditional reserves of gold or fiat currency, Bitcoin offers a decentralized and censorship-resistant alternative, allowing nations to store wealth outside of global financial oversight. For North Korea, this is particularly advantageous, as sanctions have long restricted its access to international banking systems. By accumulating Bitcoin, Pyongyang secures an asset that can be used for global transactions without relying on the dollar-based financial network.

While the U.S. frames its reserve as a financial strategy, North Korea’s BTC buildup appears to be a silent power move, blurring the lines between cybercrime and state policy. This marks a new phase in the geopolitical power struggle, where digital assets play a key role in economic and strategic dominance.

Crypto Reaction is Negative

The crypto space is fearing North Korea’s bitcoin gamble; many call their illegal Bitcoin holdings a political move to put pressure on the US government.

Others are looking forward to the US taking action before other countries take control.