London considers selling Bitcoin stash to fill up budget hole

With Bitcoin’s price at a record high, it’s becoming very difficult for some governments and companies to continue Hodling, especially if they’re carrying a large debt burden. The latest government with so-called “paper hands” (the opposite of “diamond hands,” or someone who hangs on to their crypto) is Keir Starmer’s Labour government.

Stash

According to reports in the generally well-informed Telegraph (and subsequently an opinion piece in the Spectator), the UK government is considering following Germany’s example of last year and selling its Bitcoin holdings. This would net the Labour government some £5 billion if they manage to sell at current prices.

🔴 Hoard of seized cryptocurrency could be offloaded to ease pressure on public finances

Read more below ⬇️https://t.co/AFXo2REXJt pic.twitter.com/vvkmdc1CHQ

— The Telegraph (@Telegraph) July 19, 2025

Keir Starmer’s Labour government has had a disastrous year. Not only have they plummeted in the opinion polls (after winning an absolute majority in last year’s election), but their budget deficit is also widening. Chancellor of the Exchequer Rachel Reeves may have found a solution though. According to the British newspaper The Telegraph, Rachel is considering following Germany’s example of last year and simply selling the UK’s Bitcoin stash.

The London parliament holds approximately 60,000 Bitcoins, mostly seized by the police and other judicial authorities for illegal activities. With inflation hovering around 4% (making it difficult to lower interest rates, and therefore keeping their growth relatively low), this seems like an easy decision for the British government.

But how will the public react if London copies Berlin’s mistake from last year? During Euro 2024, the German government sold approximately €2 billion worth of Bitcoins, at an average price of €50,000 per Bitcoin. They could, of course, have simply waited a year and earned another €2 billion.