Key Highlights
A U.S. military unit is operating its own Bitcoin node, framing the network as a strategic asset in great-power competition with China.
Officials reportedly view proof-of-work as a form of digital power projection, echoing the "Softwar" thesis authored at MIT by U.S. Space Force Major Jason Lowery.
The move follows growing Pentagon interest in blockchain infrastructure, open-source intelligence, and sanctioned-asset tracing.
A unit inside the U.S. military is now running a full Bitcoin node, a step first reported by Pirate Wires and later confirmed by defense officials familiar with the program. The node gives the service independent access to the Bitcoin ledger without relying on third-party providers.
According to people briefed on the project, senior officers have begun treating Bitcoin mining and node operation as a form of power projection, a concept popularized in the 2023 MIT thesis "Softwar" by U.S. Space Force Major Jason Lowery. The thesis argues that proof-of-work networks allow states to impose physical costs on adversaries in cyberspace.
The framing has gained traction as China continues to expand its digital yuan pilots and tighten controls over domestic crypto activity. Defense analysts said Washington views Bitcoin's open infrastructure as a counterweight to state-controlled payment rails.
The Pentagon has not published a formal policy on Bitcoin, though procurement records show multiple defense contractors working on blockchain analytics, wallet forensics, and node hardening for federal clients.
A defense official, speaking on condition of anonymity, said the node operation is "observational for now" and focused on network security research rather than custody of digital assets.
