Why the UK Must HODL

Don’t Sell the Future: Why the UK Must HODL Its 61,000 BTC

In early 2025, the UK government finds itself unexpectedly holding one of the largest Bitcoin stockpiles on Earth—roughly 61,000 BTC seized in 2021 from a money-laundering ring tied to a £7 billion fraud. At the time, it was valued at £1.4 billion; today it’s estimated to be worth approximately £5.2 billion—a windfall Chancellor Rachel Reeves is reportedly considering liquidating to close a looming £22 billion deficit.

Selling now may seem fiscally prudent. But the opposite could be true: this is a moment for strategic restraint, not reaction‑driven liquidation.

This isn’t a minor stash. The estimated 61,000 BTC puts the UK:

On par with MicroStrategy, the largest corporate holder of Bitcoin

Ahead of most sovereign wealth funds

In possession of 0.29% of the total 21 million BTC supply

Given the finite supply, that’s an incredibly scarce resource. Selling now may feel like good budgeting, but it’s akin to selling equity in Apple in 2004 — for short-term cash at the cost of long-term upside.

Germany’s Lesson: A Cautionary Tale in Opportunity Cost

Germany’s experience is instructive. In mid‑2024, the Saxony state sold nearly 50,000 BTC seized from the infamous Movie2k piracy case, generating roughly $2.9 billion at ~$57,900/BTC. But in the months that followed, Bitcoin more than doubled, meaning those holdings would now fetch $5.2+ billion—a missed opportunity of ~$2.3–3 Billion.

Key points from Germany’s case:

Market pressure increased: price dipped 15–17% as BTC flooded exchanges.

The state sold under a legal emergency‑sale obligation once volatility thresholds were breached.

Political critics, including MP Joana Cotar, warned it short‑changed taxpayers and urged treating BTC as a reserve asset.

Even Reddit commentators noted the panic selling and volatility, lamenting Germany’s decision to treat seized Bitcoin like perishable goods.

Why the U.S. (Including Trump) Is Building a Strategic Bitcoin Reserve

Bitcoin as a Sovereign Reserve Asset

In March 2025, President Trump signed an executive order establishing a Strategic Bitcoin Reserve — treating BTC as a national reserve, alongside traditional assets like gold and petroleum.

This Reserve is funded using forfeited Bitcoin — currently estimated at around 200,000 BTC, valued at ~$17 billion — and it’s designated to be held long-term, with no intention of dumping.

Driving Institutional Recognition

By formalizing Bitcoin in a reserve capacity, the U.S. government shifts the narrative — from “crypto is speculative” to “crypto is sovereign asset.”

This action triggered a notable uptick in Bitcoin prices and reaffirmed digital assets as strategic macro instruments.

Complementary Legislation & Regulatory Support

Trump signed the GENIUS Act, formalizing a regulatory framework for stablecoins — increasing clarity and confidence in the digital-asset sector.

Credit also goes to the new crypto-friendly SEC and key appointments (e.g., Paul Atkins), who are ensuring a more welcoming environment for digital assets.

Private-Sector Adoption Mirrors Public Policy

Trump-backed Trump Media & Technology Group, the entity behind Truth Social, has placed $2 billion (~2/3 of its liquid assets) into Bitcoin and related securities.

Other corporations—like MicroStrategy—are making similar moves, spotlighting BTC as a corporate treasury strategy.

What This Means for the UK & Global Financial Policy

The U.S. isn’t buying BTC for short-term political gains. It’s structurally integrating Bitcoin into national reserves — signaling digital assets are here to stay.

This sets a precedent: sovereign governments can responsibly HODL, not just liquidate. The time is ripe for the UK to treat its seized Bitcoin holdings seriously: not as budget windfalls, but as strategic assets.

Germany’s rushed liquidation underscores what to avoid: dumping BTC for short-term political convenience and locking in opportunity costs. The UK holds a rare fiscal resource—about 61,000 BTC. Rather than eroding future value, the government has the chance to treat Bitcoin as a strategic fiscal reserve—a tool of financial optionality, not a disposable windfall.

Hold the Bitcoin. Manage it strategically. Don’t sell the future.

In doing so, the UK can position itself not just as a regulatory crypto hub, but as a savvy steward of sovereign digital assets—smart, disciplined, and forward-thinking.