Main Points:
- In late 2017, Bulgaria seized 213,519 BTC (~$3.5 billion) and sold the holdings in 2018.
- At today’s prices (~$123,000/BTC), that stash would be worth $25.2 billion, exceeding Bulgaria’s $24 billion national debt.
- Critics cite Bitcoin’s volatility, regulatory uncertainty, and immature custody as reasons for the sale.
- Other governments now hold over 463,741 BTC (2.3% of supply), with major holders including the U.S., China, UK, and Ukraine.
- Strategic reserve advocates argue for long-term diversification, hedging, and legal frameworks to manage risk.
Bulgaria’s 2017 Bitcoin Seizure and Sale
In late 2017, Bulgarian law enforcement seized 213,519 BTC from organized crime groups, valuing the haul at approximately $3.5 billion—equivalent to about one‑fifth of the country’s then $17 billion public debt. Within months, the government liquidated the entire cache, officially denying any subsequent holdings.
Despite official statements to the contrary, rumors persisted that some BTC remained in government wallets. However, on-chain data show the full amount was routed through exchanges in mid-2018, confirming the sale.
From $3.5 Billion to $25.2 Billion: The Missed Opportunity
Since the sale, Bitcoin has experienced several rallies, most notably breaking through $123,000 on July 14, 2025. At that price, the original 213,519 BTC would now be valued at approximately $25.2 billion—82% more than Bulgaria’s current national debt of $24 billion.
Chart generated above comparing sale proceeds, current value, and national debt
Figure: Bulgaria’s Bitcoin sale proceeds vs. current value vs. national debt (in USD billions).
Expert Perspectives on the Decision
Volatility Concerns
Alex Obchakevich, founder of Obchakevich Research, emphasizes that Bitcoin’s extreme price swings undermine its suitability as a stable reserve asset:
“Potential upside is erased by the risk of sudden value crashes,” he says, advocating diversified reserve strategies with only 10–15% allocated to crypto and employing hedging derivatives.
Lack of Understanding
Robert Zinidal, director at crypto platform İconomi, suggests that policymakers’ limited grasp of Bitcoin’s technology and mission drove the liquidation:
“Had they understood Bitcoin’s long‑term utility, they wouldn’t have sold en masse. Today, such a blanket sale would be unheard of,” he notes.
Custody and Regulation
Valentin Mihov, co‑CEO of Web3 market maker Enflux and a Bulgarian national, highlights operational hurdles in 2017–18, including immature custody infrastructure and unclear EU regulation. With tight fiscal discipline, a full sale seemed the safest path. Still, he believes a strategic hold of even 10–20% could have placed Bulgaria at the forefront of national crypto reserves.
Global Government Bitcoin Holdings
As of mid‑2025, governments worldwide collectively hold 463,741 BTC, about 2.3% of the total supply. According to CCN’s July 14, 2025 data, the top government holders include:
| Country | BTC Held | Value ($ billions) |
|---|
| United States | 198,012 BTC | $24.26 B |
| China | 190,000 BTC | $23.29 B |
| United Kingdom | 61,245 BTC | $7.50 B |
| Ukraine | 46,351 BTC | $5.68 B |
| Bhutan | 11,411 BTC | $1.40 B |
(Others: El Salvador, North Korea, Venezuela, Finland…)
Notably, the U.S. has formalized a Strategic Bitcoin Reserve, and Bhutan leverages hydropower for mining to supplement its stash. Meanwhile, North Korea’s Lazarus group remains a headline case for illicit BTC holdings.
Lessons for National Reserves
- Diversification over Concentration
Limiting crypto exposure (e.g., 10–15% of reserves) can balance growth potential against volatility risks. - Gradual Accumulation & Hedging
Phased buying, coupled with derivatives hedges, can smooth out entry costs and mitigate drawdowns. - Robust Custody & Legal Clarity
Mature custody solutions and clear regulatory frameworks are critical for secure, compliant reserve management. - Strategic Framework
Establishing formal policies—like the U.S. “Digital Fort Knox”—signals long‑term commitment and reduces political risk.
Conclusion
Bulgaria’s swift sale of seized Bitcoin in 2018, while defensible under the era’s regulatory and custodial constraints, now reads as one of the greatest “what‑ifs” in sovereign asset management. With that decision, the country forewent a $21.7‑billion opportunity gain relative to its debt, underscoring the evolving narrative of Bitcoin from fringe speculation to a recognized strategic reserve. As more nations formalize crypto reserve policies, the balance between risk, reward, and strategic foresight will determine who leads the next wave of digital‑asset stewardship.
