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Pentagon Confirms Classified Bitcoin Programs, Cites Leverage Over China

The signals point to Bitcoin entering U.S. defense planning with potential policy shifts that could move markets.

Overview

  • Defense Secretary Pete Hegseth, who testified Thursday, said the Pentagon runs classified Bitcoin efforts that give the U.S. leverage against China.
  • Adm. Samuel Paparo said U.S. Indo‑Pacific Command operates a live Bitcoin node for monitoring and cybersecurity research, stressing that proof‑of‑work raises costs for attackers.
  • Rep. Lance Gooden framed Bitcoin as a national security issue, citing Iran’s reported Bitcoin transit tolls, North Korea’s ransomware use, and concerns that China is building a strategic stash.
  • Estimates cited in coverage put U.S. holdings near 328,000 BTC and China near 194,000 BTC, while Russia and China together account for roughly a quarter of global mining through onshore and offshore activity.
  • Trump’s 2025 order created a U.S. strategic Bitcoin reserve from about 200,000 forfeited coins, and analysts say new defense legislation could formalize the Pentagon’s framing and expand official demand over time.