tl;dr
U.S. Treasury Secretary Scott Bessent confirmed the government will not buy additional Bitcoin (BTC) for the Strategic Bitcoin Reserve established by President Trump, with growth coming solely from seized BTC assets. The reserve, valued between $15 billion and $20 billion, currently holds about 198,...
United States Treasury Secretary Scott Bessent confirmed that the government will not purchase additional Bitcoin (BTC) for the Strategic Bitcoin Reserve established by President Donald Trump’s March 7 executive order. Instead, the reserve will grow exclusively through seized BTC assets. Bessent emphasized that confiscated bitcoins will be held and not sold in the near future, with potential for further seizures to add to government holdings over time. He estimated the reserve’s current value at between $15 billion and $20 billion.
According to Bitcoin analytics platform Bitbo, as of December 2024, the U.S. government owned approximately 198,012 BTC, valued around $23.6 billion. Nearly half of this, around 94,643 BTC, came from the seizure of assets connected to the 2016 Bitfinex hack, involving Ilya Lichtenstein and Heather Morgan. These seized bitcoins became part of the Strategic Bitcoin Reserve announced officially by President Trump in March 2024.
The executive order introduced a formal Strategic Bitcoin Reserve exclusively for BTC, shifting U.S. asset reserves into the 21st century. This reserve is akin to traditional strategic reserves—stockpiled assets the government draws on in cases of crisis or economic turmoil. However, the order is vague on how exactly the BTC stockpile will be used, stating only that it will meet governmental objectives “in accordance with applicable law.”
Alongside the BTC reserve, the order created a U.S. Digital Asset Stockpile of other digital assets forfeited through legal proceedings. However, no further acquisitions for this stockpile will occur beyond assets obtained through forfeiture. Importantly, the order stipulates the BTC reserve will not be built with public funds but through BTC already held by the Treasury from forfeitures or civil penalties.
The Treasury is tasked with developing budget-neutral strategies to acquire additional BTC for the reserve, without using taxpayer money. Bessent reiterated the department’s commitment to exploring such methods. Meanwhile, law enforcement continues to expand the reserve through seizures. For example, in April 2024, the FBI seized $2.4 million in BTC linked to ransomware activities, and in September, DOJ actions targeted digital assets tied to a suspected ransomware operator, Ianis Aleksandrovich Antropenko, authorizing seizure of over $2.8 million.
These ongoing seizures contribute to the growing Strategic Bitcoin Reserve, which now stands as a significant asset pool valued in the tens of billions of dollars. The reserve reflects a modern approach to asset stockpiling, leveraging digital currency's unique characteristics while adhering to budgetary and legal constraints.