President Donald J. Trump just signed an executive order on March 6, 2025, creating the Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile. If you’ve heard about Bitcoin or cryptocurrencies but aren’t sure how this affects you, don’t worry—we’re breaking it all down in simple terms.
Here’s what’s happening, why it matters, and how these two new programs differ.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
— David Sacks (@davidsacks47) March 7, 2025
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
What’s a Strategic Bitcoin Reserve?
The U.S. government has committed to keeping a giant stash of Bitcoin, like how it stores oil or gold for emergencies. That’s the Strategic Bitcoin Reserve in a nutshell. The idea is to hold onto Bitcoin as a valuable asset that could grow over time, with the goal of growing the countries wealth.
Here’s how it works:
- Where It Comes From: The government already owns about 200,000 Bitcoins (worth roughly $17.6–$18 billion right now, with Bitcoin at ~$88,000–$90,000 each). These came from "criminals" like Ross Ulbricht, the Silk Road creator, who coincidentally was recently freed. Not from buying them with US tax dollars.
- No Selling Allowed: Unlike before, when the government sold off seized Bitcoin, this stash is locked away for the long haul. It's a bit like a savings account for the U.S.
- Why Do This?: Bitcoin’s value has skyrocketed over the years. David Sacks, the White House “Crypto Czar,” pointed out that over the past decade, the U.S. sold 195,000 Bitcoins for just $366 million. If they had kept them, they’d be worth over $17 billion today! The Reserve aims to avoid losing out like that again and maybe even help with the national debt (now over $35 trillion) if Bitcoin keeps rising.
Trump calls it a “digital Fort Knox” (like the infamous gold vault...), and it’s part of his plan to make America the “crypto capital of the world.”
What’s the Digital Asset Stockpile?
Alongside the Bitcoin Reserve, there’s a second program: the U.S. Digital Asset Stockpile. This is a separate pile for other cryptocurrencies—like Ethereum or XRP—also grabbed from "criminals". What this also means is that they have different legal requirements. But for now, let's take a look at the key differences between them.
Strategic Bitcoin Reserve vs U.S. Digital Asset Stockpile
| Aspect | Strategic Bitcoin Reserve | U.S. Digital Asset Stockpile |
|---|---|---|
| What’s Included | Only Bitcoin—about 200,000 coins to start | Other cryptocurrencies (e.g., Ethereum, XRP) seized from crimes |
| Legal Status | Created by Trump’s March 6, 2025, executive order; managed by Treasury with a strict no-sell rule | Also from the same executive order, but Treasury can decide to sell these assets |
| Purpose | A long-term “store of value” to grow and strengthen U.S. finances—like gold or oil reserves | A flexible stash; could be held or sold depending on strategy |
| Selling Allowed? | No—these Bitcoins are locked up unless Congress says otherwise | Yes—the Treasury has wiggle room to sell these coins |
| How It’s Funded | Seized Bitcoin only; no plans to buy more yet | Seized non-Bitcoin crypto only; no buying here either |
| Management | Centralized under Treasury with a focus on keeping it safe and untouched | Treasury oversees, but with more freedom to manage or liquidate |
The Facts and Numbers
- Bitcoin Holdings: The U.S. has ~200,000 Bitcoins, about 1% of all Bitcoin that will ever exist (there’s a cap at 21 million). That’s worth $17.6–$18 billion as of today.
- Past Losses: Sacks says the U.S. sold ~195,000 Bitcoins over 10 years for $366 million. At today’s prices, that’s a missed $17 billion opportunity.
- Price Swings: Bitcoin’s wild—hitting $107,000 in December 2024 but dropping to $85,000 after this news. Still, it’s up 400% in 4 years, 2,500% in 6 years, and 33,000% in 10 years!
- No Tax Money: Both the Reserve and Stockpile use only seized assets—no new spending here.
- Other Players: States like Oklahoma and Texas are eyeing their own Bitcoin reserves, and countries like El Salvador already hold Bitcoin.
Why Now?
Trump and folks like Senator Cynthia Lummis (who wants the U.S. to buy 1 million Bitcoins) see Bitcoin as “digital gold”—a hedge against inflation and a way to stay ahead of countries like China. But the thing is, they aren't going to be buying.
Only using seized Bitcoin.
So make of that what you will. It's not quite the ambitious goals people had in mind, such as buying 1 million Bitcoin. But it's certainly going to push some forms of adoption around the world, along with a LOT of regulation.
Now is a time where you really need to consider your privacy, security and how you interact with crypto going forward. There's going to be rules and regulations enforced left right and center.
If history is anything to go buy then it can become a strange time for anyone holding crypto. Just look at 1933.
And with the stablecoin regulations coming in, Trump buying a lot of Ethereum through World Liberty Fi, you better be prepared for what's coming...
