U.S. President Donald Trump signs a Strategic Bitcoin Reserve
On March 7, 2025, U.S. President Donald Trump announced the creation of a Strategic Bitcoin Reserve (SBR) and a U.S. Digital Asset Stockpile via an executive order. This initiative represents a major shift in the U.S. government’s perspective on digital assets, especially Bitcoin. The aim is to make the U.S. the “Crypto Capital of the World” and to incorporate digital assets into the national financial system.
The U.S. Department of Treasury will manage the Strategic Bitcoin Reserve. The main component will be Bitcoin seized through legal processes. The government has announced that the Bitcoin in this reserve will not be sold. Instead, it will be treated as a long-term investment, not a speculative asset.
The Treasury is collaborating with other federal agencies to establish a legal framework for transferring seized cryptocurrencies into the reserve. We have plans to acquire more Bitcoin, and importantly, this will not financially burden taxpayers.
Besides Bitcoin, the U.S. Digital Asset Stockpile will also contain other seized digital currencies such as Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). The wider range shows that the government is increasingly interested in blockchain technology.
After the announcement, Bitcoin’s price jumped more than 11% to $94,164. Meanwhile, Ethereum also saw a rise of 13%, reaching $2,516. Other cryptocurrencies experienced notable gains; however, prices stabilized soon after.
The U.S. government currently holds around 200,000 Bitcoin, which is valued at more than $17 billion. In the past, selling Bitcoin has resulted in taxpayers losing billions in potential gains. Between 2014 and 2023, the U.S. Marshals Service sold a significant amount of Bitcoin for just $366.5 million. However, it would be worth much more today. The Trump administration plans to keep Bitcoin assets long-term to avoid repeating this mistake.
Experts think that creating the Strategic Bitcoin Reserve is a good step for Bitcoin. This legitimizes Bitcoin as a strategic asset, and it also reduces the chances of a government ban. Regulatory uncertainty has previously held back institutional investors from fully embracing Bitcoin. Now that the government holds Bitcoin as a reserve, fears of a crackdown are decreasing.
This action may also inspire other countries to embrace Bitcoin. Since the U.S. holds the most Bitcoin, other countries might feel the need to buy Bitcoin before prices go up even more. The U.S. currently has more Bitcoin than China. This shift may impact global financial strategies.
This decision also goes against the views of major financial institutions, such as the International Monetary Fund (IMF), which has previously advised against holding Bitcoin. Now that the U.S. is treating Bitcoin as a strategic asset, financial institutions might have more reasons to pay attention to it.
Critics warn that, on the other hand, government involvement in crypto might distort prices. Some think that if the government sells its Bitcoin later, it might hurt prices. Some believe this might assist in managing liquidity for existing holders.
More information about the Strategic Bitcoin Reserve will be shared at the upcoming White House Crypto Summit. There, policymakers and industry leaders will come together to discuss the role of crypto in the U.S. economy. This initiative may serve as a global example for other governments looking at Bitcoin as a strategic asset. Consequently, it could reshape markets in the future.
