In This Update
Just prior to the White House Crypto Summit, President Donald Trump approved an executive action to create a strategic Bitcoin reserve and another reserve of various digital assets. This announcement caused Bitcoin’s value to plummet to $84,000 on Thursday evening; however, the federal government won’t be acquiring new bitcoins, instead establishing a reserve from its current holdings. By Friday morning, Bitcoin experienced a 1% increase, settling around $90,000.
Trump’s crypto advisor, David Sacks, mentioned on X that the Bitcoin reserve will utilize Bitcoin that the federal government has previously seized through civil or criminal asset forfeiture.
The Treasury Department is set to create an office dedicated to managing the Bitcoin reserve. “Bitcoin is the original cryptocurrency,” the document states. “Given its limited supply, there is a strategic benefit to being one of the first nations to establish a Bitcoin reserve.”
The U.S. Holds the Largest Bitcoin Reserve
As it stands, the United States is the largest governmental holder of Bitcoin, possessing an astonishing 213,297 Bitcoin, according to CoinGecko data. This is valued at roughly $19.3 billion at current market rates.
The bulk of these Bitcoin assets have been obtained through cryptocurrency seizures linked to law enforcement efforts targeting illegal activities, such as transactions on dark web platforms and black-market trading.
Reactions from Crypto Leaders
Notable figures from the crypto sector, including Coinbase (COIN+0.55% CEO Brian Armstrong, Strategy (MSTR-1.53%) executive chairman Michael Saylor, and Vlad Tenev of Robinhood (HOOD-5.00%) expressed their approval of Trump’s initiative to create a strategic crypto reserve, labeling it a significant milestone for the crypto industry.
