Our Bitcoin: Not For Sale, Strategic Accumulation

Vs Takes a Stand: Our Bitcoin Not for Sale, and Strategic Accumulation in the Plans

28 May 2025 at 07: 44

Reading time: 2 minutes

Bo Hines, the executive director of the President's Council of Advisors for Digital Assets, announced at the 2025 Bitcoin Conference in Las Vegas on May 27 that the federal government will buy all of the bitcoin already owned Bitcoin (BTC) and will also explore budget-neutral ways to expand its Strategic Bitcoin Reserve (SBR). Hines described Bitcoin as “digital gold” and emphasized that the scarcity of this asset requires permanent custody.

He drew a clear distinction between the Strategic Bitcoin Reserve and the broader National Stockpile of Digital Assets, emphasizing an absolute ban on dispositions. This distinction was also enshrined in an executive order signed by President Donald Trump on March 6, which created both concepts.

Hines stated, “We will not sell any Bitcoin that we may have in the U.S. government, period.” He further indicated that the U.S. recognizes Bitcoin as a commodity with “intrinsic stored value.” This status warrants a separate reserve for this single asset.

Open end accumulation with budget neutrality

Hines dismissed the idea of a numerical target for federal Bitcoin holdings, clarifying that there is no limit. He stated, “We want to get as much as we can.” The reserve infrastructure requires officials to find “budget-neutral ways” to expand the supply, and the working group continues to explore options that meet that requirement.

Speakers at the conference suggested ways to add Bitcoin to the reserve without using taxpayer dollars. Matthew Sigel, head of digital asset research at VanEck, pitched the idea of a royalty tied to Bitcoin mining in the US. This would mean that miners would pay a fraction of their block rewards in BTC to a government wallet, simplifying the accumulation process.

Additionally, crypto mining rigs that use wasted methane would be exempt from taxes. Alex Thorn, head of research at Galaxy Digital, believes the “fastest route” to accumulating Bitcoin is to sell altcoins from the National Digital Asset Stockpile and use the proceeds to buy more BTC. He noted: “That’s elegant, because there’s not even any cash involved. You could sell an altcoin/BTC pair and no cash would appear, and there’s nothing for the predatory government to focus on.”

Closing note

The US government’s vision of Bitcoin as a strategic asset presents interesting possibilities for the future of digital assets. The emphasis on expanding the Strategic Bitcoin Reserve without using taxpayer dollars could provide a model for other countries seeking to capture the value of cryptocurrencies. These developments are crucial for the growth and institutionalization of the crypto market.

Frequently Asked Questions

What is the Strategic Bitcoin Reserve?
The Strategic Bitcoin Reserve is a specially managed supply of Bitcoin by the US government, with an emphasis on permanent custody and no sale of existing holdings.

Why does the government describe Bitcoin as “digital gold”?
The term “digital gold” emphasizes Bitcoin’s scarcity and intrinsic value, similar to that of physical gold, making it an attractive asset for custody and strategy.

How can the US government accumulate Bitcoin without using taxpayer money?
The government is exploring various strategies, such as levying royalties on Bitcoin mining and selling altcoins from the National Digital Asset Stockpile, which would allow it to acquire more Bitcoin without using tax revenue.

Share this article:

Disclaimer: The information on Block 9 is for general informational and educational purposes only. While we strive to provide up-to-date, correct and relevant content, we make no warranties as to the completeness, accuracy or reliability of the information provided. All content on this website, including articles, analyses, opinions and other publications, is for general information purposes only and does not constitute professional or legal advice in any way, including but not limited to financial, investment or tax advice.

Block 9 makes no guarantees or representations as to any possible results or returns that may arise from the use of information on this website. Nothing on this website should be interpreted as a recommendation to buy, sell or hold any particular asset, including but not limited to cryptocurrencies, tokens or other financial instruments.

The opinions and views expressed in contributions by editors, external authors or community members are strictly personal and do not necessarily represent the views or policies of Block 9 as a platform. Block 9 accepts no liability for any loss or damage – direct or indirect – resulting from the use of (or reliance on) the information published on this website.

Investing in cryptocurrencies and other digital assets involves significant risks. The value of such assets can fluctuate significantly, and there is a chance that you could lose (some of) your investment. We strongly recommend that you always do your own research (DYOR) and seek independent advice from a qualified financial advisor before making any financial decisions. By using this website, you agree to this disclaimer and accept that Block 9 is not responsible for your investment choices or the results thereof.