Donald Trump Establishes Strategic Bitcoin Reserve, Crypto Stockpile Utilising Seized Assets

The US government is estimated to hold around 200,000 Bitcoin tokens.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 7 March 2025 18:08 IST

Donald Trump Establishes Strategic Bitcoin Reserve, Crypto Stockpile Utilising Seized Assets

Photo Credit: X/ @davidsacks47

The White House is scheduled to host the US’ first Crypto Summit on March 7

Highlights

Trump promised to create a Bitcoin reserve during election campaign
The accumulated tokens will not be up for sale
The White House has referred to BTC as ‘Digital Gold’

US President Donald Trump has signed an executive order to create a strategic Bitcoin Reserve in the country. White House Crypto Czar, David Sacks announced the development through his X handle in the early hours of Friday, March 7. He stated that the reserve will be capitalised with Bitcoin tokens that were forfeited as part of criminal or civil proceedings. The order also entails the accumulation of a digital asset stockpile comprised of altcoins that have been seized by the federal agencies as part of legal investigations.

Sacks estimated that the US government presently holds around 200,000 Bitcoin tokens. With BTC presently trading at $87,726 (roughly Rs. 76.4 lakh), 200,000 tokens amount to over $17.6 billion (roughly Rs. 1,53,161 crore). President Trump has ordered a complete audit of the Federal government's digital asset holdings.

Essentially, Trump's Bitcoin Reserve and crypto stockpile will be funded from crypto assets confiscated during federal investigations instead of fresh tokens purchased using taxpayers' money.

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“The Secretaries of Treasury and Commerce are authorised to develop budget-neutral strategies for acquiring additional Bitcoin, provided that those strategies have no incremental costs on American taxpayers. The government will also not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,” Sacks wrote in his tweet.

In an official statement, the White House referred to Bitcoin as ‘digital gold' and said the curation of these crypto reserves will give them proper oversight and protect them from being sold off pre-maturely.

Sacks also shared pictures of the President signing the executive order at the Oval Office, calling it a historic moment.

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Historic moment! Thank you, President Trump! pic.twitter.com/Ql6lG63EEU
— David Sacks (@davidsacks47) March 7, 2025

This announcement comes just days before the White House hosts the US's first-ever Crypto Summit on Friday, March 7. Several prominent figures from the crypto industry have confirmed their invitations to the event, which aims to bring industry leaders together with policymakers and regulators.

Ahead of the summit, many in the crypto community have praised the establishment of these reserves. These include MicroStrategy founder Micheal Saylor and Coinbase CEO Brian Armstrong. In his tweet, Armstrong advised the G20 nations like India, Germany, France, and Canada to ‘follow America's leadership'.

This executive order aligns with Trump's pledge to make the US the global leader in cryptocurrency. During his election campaign last year, he vowed to establish a Bitcoin reserve for the nation. Under his administration, the US SEC has also launched a Crypto Task Force to develop a regulatory framework that fosters industry growth while protecting investors from market risks.

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Further reading: Cryptocurrency, Donald Trump, Bitcoin Reserve, David Sacks

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More