Pentagon Confirms Classified Bitcoin Operations as National Security Asset
Defense Secretary Pete Hegseth told the House Armed Services Committee that the Pentagon's Bitcoin initiatives provide strategic leverage across multiple geopolitical scenarios, with the military running live node operations for operational testing and surveillance.
Key Takeaway
The Pentagon is actively monitoring Bitcoin infrastructure, signaling crypto's shift from speculative asset to military intelligence tool.
Defense Secretary Pete Hegseth confirmed the Pentagon is running classified Bitcoin projects that give the US military leverage across multiple geopolitical scenarios.
Hegseth testified before the House Armed Services Committee that the department's work on enabling or defeating the technology provides strategic leverage. The Secretary, who disclosed Bitcoin holdings in his 2025 financial filings, positioned the asset as a counterweight to China's digital control model.
US Indo-Pacific Command Admiral Samuel Paparo Jr. revealed that the military runs a live Bitcoin node to monitor the protocol for operational testing and surveillance purposes, not mining.
Texas Republican Lance Gooden pressed Hegseth on the military's Bitcoin strategy during the hearing, citing evidence that Iran demands Bitcoin payments for transit access while North Korea uses the crypto in ransomware campaigns. Russia accounts for roughly 16% of global Bitcoin mining and China represents nearly 12% of mining activity.
President Trump seeded a US strategic Bitcoin reserve with approximately 200,000 government-held coins through a 2025 executive order. Bitcoin traded at ₱4,754,267 ($77,413) following the testimony, up 1.8% over 24 hours but down from October 2025's peak.
This article was written based on reporting from Dlnews.
