May 05, 2026
By Shubhii Verma
US Defense Secretary Pete Hegseth has revealed that the Pentagon is running classified programs involving Bitcoin, describing the cryptocurrency as a tool that could give the United States strategic leverage over China and other geopolitical rivals.
Speaking before the House Armed Services Committee on April 30, Hegseth said the Department of Defense is working on two operational tracks related to Bitcoin: one focused on enabling and understanding the technology, and another aimed at countering potential threats linked to it. He told lawmakers that many of these efforts remain classified but are already playing a role in national security planning.
Hegseth described himself as a long-time supporter of Bitcoin and crypto technology, becoming the first sitting US Defense Secretary to publicly acknowledge that the US government is actively running classified Bitcoin-related initiatives. He said these efforts provide the US with leverage “in a lot of different scenarios,” especially in the context of growing global tensions.
The remarks came in response to questions from Texas Congressman Lance Gooden, who argued that Bitcoin has evolved from being a niche financial asset into a matter of national security. Gooden pointed to examples such as Iran reportedly demanding Bitcoin payments for ships passing through the Strait of Hormuz, North Korean ransomware attacks that use crypto, and China’s attempts to strengthen its position in the Bitcoin ecosystem.
Earlier in April, Admiral Samuel Paparo, head of the US Indo-Pacific Command (INDOPACOM), also confirmed in Senate testimony that his command operates a live Bitcoin node and is testing the Bitcoin protocol in real operational settings. He described Bitcoin as a system built on cryptography and proof-of-work that can create real costs for attackers in cybersecurity environments.
These statements together show that US military leaders are increasingly viewing Bitcoin not just as a financial tool, but as a strategic technology with defense applications.
Reports also show that the geography of Bitcoin mining is becoming a factor in global competition. Russia currently controls about 16% of the world’s Bitcoin mining power, making it the second-largest hub. China, despite banning crypto mining in 2021, is estimated to still account for around 12% through underground and offshore operations.
Earlier this year, President Donald Trump signed an executive order creating a US strategic Bitcoin reserve using around 200,000 bitcoins seized in criminal cases. This move further connects Bitcoin to US national strategy.
Taken together, these developments suggest that Bitcoin is increasingly being seen as part of the broader technological and geopolitical rivalry between the US, China, and other global powers.
