Please wait we are preparing awesome things to preview...

Pete Hegseth says Bitcoin quietly takes the fight to China, turning code into a shadow front for global power.

02.05.2026 11:33

Defense Secretary Pete Hegseth stood before the House Armed Services Committee on April 30 and outlined a two-pronged, classified campaign in which the Pentagon simultaneously cultivates and counters Bitcoin capabilities. Rather than treating the technology as peripheral, the department is threading it into operational planning so Washington can tilt varied strategic scenarios in its favor while denying comparable gains to rivals.

Addressing lawmakers, Hegseth described himself as a long-standing believer in the latent power of Bitcoin and related cryptographic systems, thereby marking the first time a sitting Defense Secretary has openly attested to classified government work in this arena during a national security hearing. The acknowledgment carries weight precisely because it frames distributed-ledger infrastructure not merely as financial tooling but as a domain where coding and consensus can amplify or erode state power.

Earlier the same month, the commander of US Indo-Pacific Command offered a complementary confirmation, noting that his theater-level unit sustains an active Bitcoin node and routinely probes the protocol under realistic operating conditions. By doing so, the command seeks to expose how resilient ledger mechanisms can impose tangible costs within cybersecurity contests, turning theoretical robustness into maneuverable leverage.

Global mining geography sharpens the stakes further. Russia now commands roughly one-sixth of worldwide hashrate, cementing its status as a top-tier extraction hub, while China—despite banning domestic operations in 2021—continues to exert influence through covert and offshore setups that account for approximately one-eighth of global capacity. These concentrations illustrate how proof-of-work dynamics have migrated into questions of sovereignty and supply.

Texas Representative Lance Gooden pressed Hegseth specifically on whether the United States is consolidating a durable edge in Bitcoin, prompting the defense chief to reiterate that classified work inside the department spans both cultivation and disruption across multiple fronts. Gooden, for his part, argued that what began as an outsider asset has matured into a national-security variable, citing Iran’s use of Bitcoin-backed flows at the Strait of Hormuz, persistent North Korean ransomware campaigns, and Beijing’s patient stockpiling strategies as evidence that ledger-based instruments now shape risk calculations at the highest levels.