U.S. Government’s Bitcoin Sales Cost Taxpayers Over $17 Billion, Says Crypto Czar David Sacks

David Sacks, the White House’s AI and Crypto Czar, shed light on a significant financial misstep by the U.S. federal government. Sacks disclosed that over the past decade, the government sold approximately 195,000 Bitcoin, fetching proceeds of $366 million. Had the government retained those digital assets, they would now be valued at over $17 billion, based on current market prices. This statement underscores a missed opportunity and highlights the need for a more strategic approach to managing cryptocurrencies, especially as their value climbs.

Sacks, a well-known figure in the tech and crypto spheres, has been vocal about the potential of digital currencies since his early involvement with companies like PayPal and his role as a venture capitalist. His appointment as Crypto Czar under the Trump administration reflects a broader shift in U.S. policy toward embracing cryptocurrencies.

The revelation about the government’s Bitcoin sales comes at a time when discussions around a Strategic Bitcoin Reserve are gaining momentum in Washington. Sacks’ comments suggest that the government’s past decisions to offload seized Bitcoin—often through auctions managed by agencies like the U.S. Marshals Service—may have cost American taxpayers billions, prompting calls for a reevaluation of how the nation handles these assets.

Bitcoin’s price history provides context for the magnitude of this missed opportunity. Since its inception in 2009, Bitcoin has experienced significant volatility, with prices rising from mere cents to over $100,000 at times in recent years. Key milestones, such as the approval of Bitcoin ETFs in 2024 and institutional adoption, have driven its value upward.

However, the government’s decision to sell Bitcoin, often at lower price points, contrasts sharply with the strategies of long-term investors who have reaped substantial rewards. For instance, data from web sources indicate that Bitcoin auctions in 2014 and 2015 saw average sale prices as low as $379 per token, a fraction of today’s value.

Exploring a Strategic Bitcoin Reserve

The timing of Sacks’ statement coincides with ongoing debates about establishing a U.S. Strategic Bitcoin Reserve, a proposal championed by pro-crypto lawmakers like Senator Cynthia Lummis. This initiative would involve the government acquiring and holding Bitcoin as a strategic asset, potentially funded through federal reserves or seized cryptocurrencies.

Sacks’ role in leading the White House’s Crypto Summit, scheduled for March 7, 2025, positions him to influence these discussions directly. His post, which garnered widespread attention and sparked reactions from crypto enthusiasts and policymakers alike, emphasizes the importance of a long-term strategy to prevent similar financial losses in the future.

The government’s current holdings of Bitcoin, estimated at around 198,109 tokens worth approximately $18.5 billion, further fuel this conversation. These assets, primarily seized through law enforcement actions, represent a substantial resource that could be leveraged for national economic strategy. Sacks’ critique highlights a disconnect between past practices and the growing recognition of Bitcoin’s potential as a store of value, akin to gold or other strategic reserves like oil. While Bitcoin’s volatility and cybersecurity concerns remain challenges, its finite supply and increasing adoption by institutions and governments worldwide suggest a shift in how it could be utilized moving forward.