A four-star US military commander has confirmed the Pentagon is running a live node on the Bitcoin network and using it for operational tests aimed at securing and protecting networks. Admiral Samuel Paparo, commander of US Indo-Pacific Command, delivered the disclosure during a Senate hearing that placed Bitcoin squarely inside a national-security conversation about US-China digital-asset competition.
Paparo told the committee the military's interest in Bitcoin is as a "tool of cryptography, a blockchain and reusable proof of work, an additional tool to secure networks and to project power." Asked whether Washington should preserve a strategic lead over China — where the Bitcoin Policy Institute estimates Beijing holds roughly 194,000 BTC versus America's 328,000 — Paparo said, "I think this protocol is here to stay," and backed the recent GENIUS Act as a step toward countering Beijing's digital-asset direction.
Why it matters
A sitting combatant commander endorsing Bitcoin as a computer-science instrument of power — and a Senate panel asking specifically about BTC accumulation relative to China — is a categorically different signal than any prior Pentagon statement. The framing matters: Paparo distinguished between a financial Bitcoin thesis and a network-security thesis, and the military is investing in the latter. That distinction is what makes the disclosure stick — it positions BTC protocol infrastructure alongside other instruments of national power rather than a speculative reserve.
Market impact
The price action that framed the hearing did its own work: Bitcoin rallied on deeply negative funding rates, meaning short sellers are paying roughly 6% annualized to maintain leverage into the move up. Onchain analyst Czechm called the divergence — rising price plus negative funding — historically rare, and warned that a flip positive could set up a sharp short squeeze. Treasury Secretary Scott Bessent, in the same news cycle, pressed Congress to pass the Clarity Act now, arguing US leadership in digital-asset payments underwrites dollar primacy. Watch the next session's funding-rate read: a flip to positive would be the squeeze catalyst on top of a fundamentally re-rated thesis.
Frequently asked questions
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What did Admiral Paparo say about Bitcoin at the Senate hearing?
Admiral Samuel Paparo, commander of US Indo-Pacific Command, confirmed the military is running a node on the Bitcoin network for operational tests to secure and protect networks. He framed Bitcoin as a tool of cryptography, blockchain, and reusable proof of work for power projection, and said, "I think this protocol…
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How many bitcoins does the US hold versus China?
The Bitcoin Policy Institute estimates the United States holds approximately 328,000 BTC while China holds approximately 194,000 BTC — a US lead of roughly 134,000 BTC. Those figures were cited during the Senate exchange with Admiral Paparo.
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Why is negative funding while Bitcoin rallies considered bullish?
Negative funding means short sellers are paying longs to maintain leverage, currently around 6% annualized on Binance. When price keeps rising through that cost, it signals short capitulation pressure. Onchain analyst Czechm called the divergence historically rare and warned a flip to positive funding could trigger a…
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What is the Clarity Act and what did Bessent say about it?
The Clarity Act is pending US digital-asset market-structure legislation. Treasury Secretary Scott Bessent urged Congress to pass it now, arguing US leadership in digital-asset payments underwrites dollar primacy and brings the sector into regulated, KYC-compliant rails rather than "dark, unregulated places."
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What is the GENIUS Act and why did Paparo cite it?
The GENIUS Act is recent US legislation advancing stablecoin and digital-asset oversight. Admiral Paparo cited it when asked whether the US is prepared to counter China's digital-asset strategy, calling it "a great step forward" toward keeping the US competitive with Beijing.
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