According to analysts at Arkham Intelligence, North Korea (DPRK) has become one of the largest state holders of Bitcoin, overtaking El Salvador and the Kingdom of Bhutan.

How Did North Korea Accumulate So Much Bitcoin?

North Korea’s growing Bitcoin reserves are primarily linked to cyber activities carried out by the notorious Lazarus Group, a state-backed hacking collective. Recently, the group successfully hacked crypto exchange Bybit, stealing over $1.46 billion in digital assets.

To launder the stolen funds, hackers converted most of the stolen Ethereum (ETH) into Bitcoin (BTC) using the decentralized THORChain protocol.

Comparing State-Owned Bitcoin Reserves

For context, here’s how North Korea’s Bitcoin holdings compare to other nations:

🔹 Bhutan: Holds 10,635 BTC, accumulated through Bitcoin mining.
🔹 El Salvador: Owns 6,118 BTC, acquired through a daily Bitcoin purchasing strategy.
🔹 North Korea: Now holds more than both nations, largely through cybercrime activities.

The U.S. Remains the Largest State Holder of Bitcoin

Despite North Korea’s increasing Bitcoin reserves, it still trails far behind the United States, which remains the largest government Bitcoin holder. The U.S. government possesses 198,109 BTC, primarily seized from criminal and administrative cases. Some of these holdings are earmarked for the country’s strategic Bitcoin reserve.

The United Kingdom takes second place, holding 61,245 BTC.

What’s Next?

With nations like North Korea, the U.S., and the UK actively accumulating Bitcoin—whether through seizures, hacking, or purchases—the role of BTC in global finance is becoming more significant. Will governments continue expanding their crypto holdings, or will stricter regulations curb these trends?