Key Takeaways
- China is accelerating efforts to build a strategic Bitcoin reserve amid evolving US crypto regulations.
- The government allegedly sold 194,000 BTC seized from the PlusToken scam.
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China is rumored to accelerate efforts to establish a strategic Bitcoin reserve amid a major shift in crypto regulation in the US.
“China is now working double time to stand up their own Strategic Bitcoin Reserve,” said David Bailey, CEO of BTC Inc. Bailey noted that Beijing has been conducting a series of closed-door meetings since the most recent election cycle.
The country has maintained its ban on domestic crypto trading and mining since 2021, which led to China losing its former dominance in Bitcoin mining. Prior to the crackdown, Chinese miners contributed over 70% of the global hash rate.
While Chinese authorities have not officially confirmed this, Bailey said he received information from “Bitcoiners in Beijing doing the same kind of work Bitcoiners in DC are doing.”
The potential move aligns with Beijing’s broader de-dollarization initiatives, including yuan internationalization, increased gold purchases, and expansion of the BRICS economic bloc.
A Bitcoin reserve could provide China with a decentralized, non-sovereign store of value, potentially reducing its dependence on the US dollar and exposure to Western financial sanctions.
The rumored strategy contrasts with China’s reported Bitcoin sales in January. Crypto Quant CEO Ki Young Ju previously indicated that China sold 194,000 BTC, which were originally seized from the PlusToken scam in 2019.
🇨🇳 China sold 194K #Bitcoin already, imo.
PlusToken’s seized BTC in 2019 was sent to Chinese exchanges like Huobi. The CCP said it was “transferred to the national treasury” without clarifying if it was sold.
A censored regime holding censorship-resistant money feels unlikely. pic.twitter.com/ODHD9rSR0d
— Ki Young Ju (@ki_young_ju) January 23, 2025
The US currently leads in Bitcoin holdings with over 198,000 BTC, valued at approximately $18 billion at current market prices, according to Arkham Intelligence.
US lawmakers are advancing state-level Bitcoin adoption efforts, while the Trump administration is evaluating the possibility of a national digital asset stockpile that would include Bitcoin, Ethereum and other digital assets.
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