The Alaska Purchase: 586,412 Square Miles for $7.2 Million

The Alaska Purchase of 1867 was one of the most consequential — and initially controversial — territorial acquisitions in American history. Secretary of State William H. Seward negotiated the purchase of 586,412 square miles of territory from the Russian Empire for $7.2 million, or approximately 2 cents per acre. Critics called it "Seward's Folly," "Seward's Icebox," and "Walrussia," dismissing the territory as a frozen wasteland with no value.

Introduction

The critics could not have been more wrong. Alaska proved to contain enormous deposits of gold, oil, timber, and fisheries, along with unparalleled geographic features: North America's highest peak, the largest national park, the longest coastline of any US state, and some of the most pristine wilderness remaining on Earth. The purchase added 20 percent to the total area of the United States and extended American territory to the edge of the Arctic Ocean.

Geographic Scale

• Total Area: 586,412 sq mi (1.52 million km²)
• Coastline: 33,904 miles (longer than all other states combined)
• Highest Point: Denali, 20,310 ft (highest in North America)
• Time Zones: 2 (Alaska and Hawaii-Aleutian)

Alaska is the largest US state by a staggering margin — more than twice the size of Texas. It stretches 1,400 miles from east to west and 2,400 miles if the Aleutian Islands are included. The state spans 20 degrees of latitude, from the temperate rainforests of the Tongass in the southeast to the Arctic tundra of the North Slope. Its coastline of 33,904 miles exceeds the combined coastlines of all other US states.

The geographic diversity is extraordinary. Alaska contains the highest peak in North America (Denali, 20,310 feet), the largest glaciers in the United States (including the Bering Glacier, larger than Rhode Island), over 3 million lakes, and more than 100 volcanoes (over 50 of them active). The Yukon River, at 1,980 miles, is the third-longest river in the United States. Alaska also contains the northernmost, westernmost, and — due to the Aleutian Islands crossing the 180th meridian — easternmost points in the United States.

Why Russia Sold

• Russian America: Established 1733, never profitable long-term
• Population: Fewer than 700 Russians in Alaska by 1867
• Crimean War: Russia weakened, feared British seizure
• Fur Trade Decline: Sea otter populations hunted to near extinction

Russia had claimed Alaska since Vitus Bering's expedition in 1741, but "Russian America" was never a successful colony. The Russian-American Company, which administered the territory, was primarily interested in the fur trade — especially sea otter pelts, which were enormously valuable in Chinese markets. By the 1850s, overhunting had decimated sea otter populations, and the fur trade was no longer profitable.

Russia's defeat in the Crimean War (1853–1856) left the empire weakened and fearful that Britain might seize Alaska from its vulnerable Pacific coast. Selling to the United States would deny Alaska to Britain, generate needed revenue, and focus Russian attention on its Asian territories. Tsar Alexander II authorized the sale, and Seward — a committed expansionist — jumped at the opportunity.

Natural Resources

• Gold: Klondike Gold Rush (1896–1899) vindicated the purchase
• Oil: Prudhoe Bay, discovered 1968, largest US oil field
• Fisheries: $6+ billion/year, largest fishing industry in the US
• Timber: Tongass National Forest, 17 million acres

Alaska's natural resources spectacularly vindicated the purchase. The Klondike Gold Rush of 1896–1899, centered on the Yukon River drainage, drew 100,000 prospectors and generated hundreds of millions of dollars in gold. Subsequent gold strikes at Nome, Fairbanks, and Juneau continued to produce wealth well into the 20th century — the gold extracted from Alaska has been worth many times the $7.2 million purchase price.

The discovery of oil at Prudhoe Bay on the Arctic North Slope in 1968 transformed Alaska's economy. Prudhoe Bay is the largest oil field in North America, producing over 17 billion barrels since production began in 1977. The Trans-Alaska Pipeline carries oil 800 miles from Prudhoe Bay to the port of Valdez. Alaska's fishing industry — salmon, crab, pollock, and halibut — is the largest in the United States, generating over $6 billion annually.

Strategic Importance

• World War II: Japan invaded the Aleutian Islands in 1942
• Cold War: Just 55 miles from Russia across the Bering Strait
• Military Bases: Joint Base Elmendorf-Richardson, Eielson AFB, Fort Wainwright
• Missile Defense: Ground-based interceptors at Fort Greely

Alaska's strategic importance became undeniable during World War II when Japan invaded the Aleutian Islands in June 1942 — the only foreign invasion of American soil during the war. The US military built the Alaska Highway (1,700 miles from Dawson Creek, BC, to Fairbanks) in just 8 months to establish a land supply route to the territory. The bloody recapture of Attu and Kiska islands demonstrated Alaska's vulnerability and strategic value.

During the Cold War, Alaska's proximity to Russia — just 55 miles across the Bering Strait at its closest point — made it the front line of American defense. The military established major bases at Anchorage, Fairbanks, and numerous remote radar stations across the territory. Today, Fort Greely in interior Alaska houses ground-based missile interceptors, and Joint Base Elmendorf-Richardson near Anchorage hosts fighter aircraft squadrons that routinely intercept Russian military flights approaching US airspace.

Statehood & Modern Geography

• Statehood: January 3, 1959 (49th state)
• Population: ~733,000 (2024), least densely populated state
• National Parks: 8 national parks, more than any other state
• Permanent Fund: Oil revenue fund pays annual dividends to residents

Alaska achieved statehood on January 3, 1959, nearly a century after its purchase. With approximately 733,000 residents spread across 586,412 square miles, it is by far the least densely populated state — about 1.3 people per square mile. Most Alaskans live in a handful of cities: Anchorage (population ~290,000), Fairbanks (~32,000), and Juneau (~32,000, the state capital).

Alaska contains eight national parks — more than any other state — including Wrangell-St. Elias (the largest at 13.2 million acres, larger than Switzerland) and Denali. Over 100 million acres of federal land in Alaska are managed as national parks, wildlife refuges, and forests. The Alaska Permanent Fund, created in 1976, invests oil royalty revenue and pays an annual dividend to every state resident — typically $1,000 to $2,000 per person.

Key Facts

• Alaska covers 586,412 square miles — more than twice the size of Texas.
• The purchase price was $7.2 million, or about 2 cents per acre.
• Denali (20,310 ft) is the highest peak in North America.
• Prudhoe Bay is the largest oil field in North America, producing 17+ billion barrels.
• Alaska's coastline (33,904 miles) is longer than all other US states combined.

Fun Facts

• Russia and the US are just 2.4 miles apart at the closest point — between the Diomede Islands in the Bering Strait.
• Alaska's Aleutian Islands extend so far west that they technically cross into the Eastern Hemisphere.
• The check for the Alaska Purchase was made out for $7.2 million — approximately $150 million in 2024 dollars.
• Alaska has more than 3 million lakes, 100,000 glaciers, and more active volcanoes than all other US states combined.

Final Thoughts

The Alaska Purchase transformed "Seward's Folly" into one of the greatest bargains in the history of nations. For $7.2 million, the United States acquired its largest state, North America's highest mountain, the nation's biggest oil field, its most productive fisheries, and a strategic military position at the crossroads of the Pacific and Arctic. Alaska's geography — vast, extreme, and resource-rich — has repaid the purchase price many thousands of times over.