U.S. Forms Strategic Bitcoin Reserve and Crypto Stockpile, Says KBW
President Trump's executive order aims to establish a Bitcoin Strategic Reserve and a digital asset stockpile, marking a significant development in the cryptocurrency sector, according to investment bank KBW.
- The reserve will hold assets seized by the government.
- No bitcoin will be sold; the government may seek to acquire more.
- KBW estimates the government currently holds about 198,000 bitcoin, with 55% set to be returned to Bitfinex, leaving approximately 86,000 tokens.
- Potential funding sources for additional bitcoin purchases include selling part of the government's $800 billion gold reserves or issuing U.S. Treasury Bitbonds with a bitcoin component.
- Partnerships with U.S. miners for bitcoin royalties in exchange for tax incentives are also being considered.