well I hope its the former rather than the latter. I wouldn’t mind seeing a few tiny Asteroids hammering Tehran and a few other places. Forget nukes if we controlled space we could dump whatever we wanted down the well. Whether it be raw solar energy, valuable metals, or the aforementioned asteroids which would make our nukes look like toys.
“Throw rocks at them”, “The Moon is a Harsh Mistress”, Heinlein, 1966.
We already have hypervelocity weapons "Rods From God" which are probably intended for such asset rich but hardened targets as Hainan Island. That's what we rubes know about. Now what we actually have that we aren't being told about is probably a lot more advanced than that.
Or...the money was spent on booze and hookers. Got to keep an open mind.