Pentagon Confirms Bitcoin Projects as US Elevates Crypto to National Security Priority

Pentagon Confirms Classified Bitcoin Projects

On Thursday, US Secretary of War Pete Hegseth testified before the House Armed Services Committee, confirming that the Pentagon is conducting classified and ongoing Bitcoin-related projects. Hegseth emphasized the cryptocurrency’s role as a strategic asset for American power.

“I am a long enthusiast of Bitcoin and crypto potential,” Hegseth stated. “A lot of the things we are doing, enabling it or defeating it, are classified efforts that are ongoing inside our department, which do provide us a lot of leverage in a lot of different scenarios.”

Bitcoin Gains Geopolitical Significance Amid US-China Rivalry

Hegseth’s remarks elevate Bitcoin into the realm of geopolitical strategy, particularly as Russia and China expand their roles in mining and using digital assets to bypass US sanctions. Both nations are leveraging cryptocurrency to settle energy trades and reduce reliance on the dollar amid global financial tensions.

In February, a Financial Times analysis reported that Russia accounts for roughly 16% of global Bitcoin mining, making it the second-largest mining hub worldwide. Despite China’s 2021 domestic ban, the country still represents nearly 12% of global mining activity through underground and offshore operations.

Military’s Operational Use of Bitcoin

Last week, Admiral Samuel Paparo Jr., head of US Indo-Pacific Command, confirmed that the military operates a live Bitcoin node and is testing the protocol operationally. “We’re not mining Bitcoin,” Paparo clarified. “We’re using it to monitor.”

Congressional Support for Bitcoin as a National Security Tool

During the hearing, Texas Republican Lance Gooden argued that Bitcoin has evolved “from a fringe asset into a matter of national security.” He cited reports of Iran demanding Bitcoin for transit access, North Korea-linked ransomware activity, and China’s accumulation strategies as evidence.

Hegseth echoed this framing, positioning Bitcoin as a counterweight to what he described as China’s “digital control model.”

US Strategic Bitcoin Reserve Established in 2025

In 2025, President Donald Trump signed an executive order establishing a US strategic Bitcoin reserve, seeded with approximately 200,000 government-held coins from forfeitures.

Bitcoin’s Market Performance

As of the latest data, Bitcoin is trading at $77,413, up 1.8% over the past 24 hours. Ethereum is also up 1.2% at $2,285.

Key Takeaways

• Pentagon confirms classified Bitcoin projects as strategic leverage.
• Russia and China expand crypto use to bypass sanctions and reduce dollar dependence.
• US military operates a live Bitcoin node for monitoring purposes.
• Congress and Pentagon leaders frame Bitcoin as a national security priority.
• US establishes a strategic Bitcoin reserve with 200,000 coins.