Trump signs executive order establishing US Bitcoin reserve

• Published On: 08 March 2025 at 17:40

President Donald Trump signed an executive order on Thursday to establish a strategic bitcoin reserve, aimed at strengthening the federal government's position in digital assets.

The order was issued just a day before a high-profile White House meeting with cryptocurrency industry leaders.

The reserve will be funded initially with bitcoin obtained through criminal or civil asset forfeiture proceedings, according to David Sacks, the White House's crypto policy chief. Sacks, a billionaire investor, announced the initiative with a post on the social media platform X.

Friday's crypto summit at the White House is expected to be the official platform for Trump to unveil his larger vision for the reserve, which will include four new digital assets: bitcoin, ether, XRP, solana, and cardano. The president's announcement earlier this week of these five cryptocurrencies resulted in an increase in their market value.

The exact nature of the reserve's operation and the benefits it will provide to taxpayers are unknown. Sacks stated that the government would implement a strategy to maximize the value of its holdings but did not elaborate. He emphasized that the bitcoin in the reserve would not be sold, comparing it to a "digital Fort Knox."

The executive order also directs the Treasury and Commerce departments to devise cost-neutral methods for acquiring more bitcoin without imposing additional costs on taxpayers. Furthermore, the US will keep a separate "Digital Asset Stockpile" for other forfeited cryptocurrencies, but no new purchases will be made beyond those obtained through legal seizures.

Following Sacks' announcement, bitcoin's price fell by more than 5% to below $85,000 before recovering to $88,109. Earlier optimism about Trump's crypto-friendly policies drove bitcoin to a record high of $109,071.86 in January.

Supporters claim that the reserve will benefit taxpayers by capitalizing on the long-term growth of digital assets. Sacks estimated that the US government owns around 200,000 bitcoin and that previous premature sales of the asset cost taxpayers $17 billion. However, these figures have not been verified.

Conservatives and industry insiders have had mixed reactions to Trump's pro-crypto stance, with some questioning whether the move benefits affluent investors more than others. The White House crypto summit is expected to shed additional light on the administration's digital asset strategy.