North Korea Surges in Bitcoin Holdings as US Establishes Strategic Reserve

As the U.S. initiates a Strategic Bitcoin Reserve, North Korea has emerged as a leading government holder of Bitcoin, thanks to hacking activities by a state-linked group. Currently, North Korea ranks third in Bitcoin holdings worldwide, raising questions about its strategic intentions amidst international developments.

As the United States prepares to establish a Strategic Bitcoin Reserve (SBR) following President Trump’s Executive Order, North Korea has emerged as a major player in the world of cryptocurrency. The nation has rapidly ascended to become one of the top three holders of Bitcoin (BTC), with indications pointing towards a hacking syndicate linked to the government that has been covertly amassing funds in digital currencies, effectively transforming these illicit gains into a national reserve.

North Korea has achieved this notable status due to the activities of the Lazarus Group, a hacking collective associated with the state. On February 21, 2025, the group executed a significant cyber heist at Bybit, where they stole more than $1.4 billion in cryptocurrency, primarily Ethereum, eventually converting a portion into Bitcoin. According to data from Arkham Intelligence, this syndicate now controls 13,562 BTC, approximately valued at $1.14 billion, thereby utilizing cybercrime for national financial gain.

Interestingly, North Korea’s accumulation of Bitcoin began before the U.S. officially proposed the SBR. The timing of their recent crypto accumulation coincided closely with President Trump’s announcement of the SBR on March 2, 2025, which he formalized with an Executive Order on March 6, 2025, adding a layer of geopolitical tension to the scenario. Arkham estimates that the United States currently holds 198,109 BTC, amounting to around $16.71 billion, making it the leading government holder of Bitcoin.

The United Kingdom holds the second position with 61,245 BTC, valued at approximately $5.17 billion, although it has not indicated plans to establish an SBR; its holdings stem from criminal seizures. North Korea finds itself nestled between the U.K. and nations like Bhutan and El Salvador in terms of national Bitcoin reserves. Bhutan’s reserve, managed by Druk Holdings, stands at 10,635 BTC worth about $897.60 million, while El Salvador’s totals 6,117 BTC, valued at $516.11 million.

The concurrent rise of North Korea’s Bitcoin holdings alongside the U.S. SBR proposal raises intriguing questions regarding Kim Jong Un’s strategic intentions. It suggests a potential intersection of cybersecurity adeptness and geopolitical strategy, where illicitly acquired cryptocurrency serves as both a financial reserve and a method of asserting power. While the U.S. promotes its reserve as a strategic asset, North Korea operates in the shadows, employing stolen funds to broker influence. This dynamic exemplifies a complex relationship where financial maneuvers by nations reflect a blend of policy decisions and clandestine actions.

In summary, North Korea has transitioned into a significant holder of Bitcoin, primarily through state-linked cybercriminal activities. This development coincides with the U.S.’s move to establish its Strategic Bitcoin Reserve, painting a complex landscape where geopolitics and illicit financial tactics converge. With the U.S. leading by a considerable margin, North Korea’s positioning as a major player in cryptocurrency highlights the evolving role of digital currencies on the global stage.

Original Source: news.bitcoin.com