A recent CoinGecko report revealed that government entities collectively possess 2.3% of the total Bitcoin supply, amounting to 463,741 BTC, a decrease from 529,591 BTC less than a year ago.

Although these figures seem remarkable, overall, there is a downward trend. Among the seven government holders, two have completely sold off their assets, with only El Salvador showing an increase in Bitcoin purchases.

While companies like MicroStrategy garner attention for their substantial Bitcoin holdings, governments rank among the top 10 largest Bitcoin holders. Analysis by CoinGecko indicates that only five nations currently maintain active Bitcoin reserves.

The largest holder is the US federal government, which seizes rather than purchases Bitcoin in connection with criminal operations. During the end of Biden's presidency, the US government started liquidating its BTC holdings, leading to the establishment of Trump's Crypto Reserve to manage and safeguard the remaining stockpile.

China, often overlooked in terms of government Bitcoin holdings, acquired a significant stash in 2020, but has not made any moves since, which has gone relatively unnoticed. The British government has also put its Bitcoin holdings on hold, while Germany liquidated its reserves last year to cover budget deficits and Ukraine sold off its BTC to fund war efforts.

Most government entities obtained Bitcoin through criminal seizures, with the exception of Ukraine, which received cross-border donations. Bhutan has been mining Bitcoin and selling off a substantial portion of its supply, while El Salvador stands out as the only government actively increasing its Bitcoin holdings despite agreeing to halt purchases to secure an IMF loan.

CoinGecko's analysis emphasizes that although governments own a considerable amount of Bitcoin on paper, the situation is subject to change due to the shifting trends and actions of these entities.