North Korea has unexpectedly become one of the largest government holders of Bitcoin, surpassing countries like El Salvador and Bhutan. This poses a significant concern for crypto investors, as Bitcoin in 'weak hands' may affect market liquidity.
North Korea's Rise as a Bitcoin Holder
The surge in North Korea's Bitcoin holdings came after a state-backed hacking group known as the Lazarus Group orchestrated a massive cyber heist, stealing over $1.4 billion in cryptocurrency from Bybit on February 21, 2025. A large portion of the loot, initially in Ethereum, was later converted into Bitcoin, swelling North Korea’s holdings to 13,562 BTC, valued at over $1.14 billion.
Diverging Strategies of the U.S. and North Korea
While North Korea has been acquiring Bitcoin through illicit means, the U.S. is employing a more structured approach. President Trump’s Executive Order on March 6, 2025, officially launched the Strategic Bitcoin Reserve (SBR), positioning the U.S. as the largest government Bitcoin holder with 198,109 BTC worth $16.71 billion.
Negative Reaction from the Crypto Community
The crypto community fears North Korea's Bitcoin gamble; many perceive their illegal Bitcoin holdings as a political move to exert pressure on the U.S. government.
North Korea’s accumulation of Bitcoin raises serious questions about the future stability of cryptocurrency markets, as it may have significant implications in the geopolitical sphere.
