Treasury to use forfeited Bitcoin for Strategic Reserve

The U.S. Treasury has announced that it will use forfeited Bitcoin to build a new Strategic Bitcoin Reserve, a concept introduced by a March executive order. This reserve is meant to be a new form of a strategic asset for the United States, similar to the Strategic Petroleum Reserve or gold reserves.

Key details about the new reserve and the Treasury’s approach:

Funding through Forfeited Assets: The primary source of Bitcoin for the reserve will be cryptocurrency seized by the government in criminal or civil proceedings. The government has stated it will not be buying Bitcoin on the open market for this reserve.

“Budget-Neutral” Expansion: While not buying Bitcoin outright, the Treasury has committed to exploring “budget-neutral pathways” to acquire more of the cryptocurrency. This could include using existing funds without increasing taxpayer costs, for example, by revaluing existing gold reserves.

The U.S. Treasury has announced that it will use forfeited Bitcoin to build a new Strategic Bitcoin Reserve, a concept introduced by a March executive order. This reserve is meant to be a new form of a strategic asset for the United States, similar to the Strategic Petroleum Reserve or gold reserves.

Key details about the new reserve and the Treasury’s approach:

Funding through Forfeited Assets: The primary source of Bitcoin for the reserve will be cryptocurrency seized by the government in criminal or civil proceedings. The government has stated it will not be buying Bitcoin on the open market for this reserve.

“Budget-Neutral” Expansion: While not buying Bitcoin outright, the Treasury has committed to exploring “budget-neutral pathways” to acquire more of the cryptocurrency. This could include using existing funds without increasing taxpayer costs, for example, by revaluing existing gold reserves.

Value of Current Holdings: U.S. Treasury Secretary Scott Bessent has estimated the government’s current Bitcoin holdings to be valued at between $15 billion and $20 billion, which will serve as the foundation of the new reserve.

No Selling: The government has also stated that it will stop selling its existing Bitcoin holdings. This policy is intended to make the asset a permanent reserve rather than a speculative holding.

Separate Stockpile for Other Assets: The executive order also established a separate U.S. Digital Asset Stockpile for other cryptocurrencies, such as Ethereum, Solana, and Cardano, which are also obtained through forfeitures.

The establishment of this reserve is a significant step in the U.S. government’s approach to digital assets, positioning the country to be a leader in the global cryptocurrency space and acknowledging the long-term value of Bitcoin as a strategic asset.

Value of Current Holdings: U.S. Treasury Secretary Scott Bessent has estimated the government’s current Bitcoin holdings to be valued at between $15 billion and $20 billion, which will serve as the foundation of the new reserve.

No Selling: The government has also stated that it will stop selling its existing Bitcoin holdings. This policy is intended to make the asset a permanent reserve rather than a speculative holding.

Separate Stockpile for Other Assets: The executive order also established a separate U.S. Digital Asset Stockpile for other cryptocurrencies, such as Ethereum, Solana, and Cardano, which are also obtained through forfeitures.

The establishment of this reserve is a significant step in the U.S. government’s approach to digital assets, positioning the country to be a leader in the global cryptocurrency space and acknowledging the long-term value of Bitcoin as a strategic asset.