USA plans to acquire 1,000,000 BTC for its reserve, based on proposed legislation and presidential support
Key Points
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It seems likely that the USA plans to acquire 1,000,000 BTC for its reserve, based on proposed legislation and presidential support.
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The plan is not yet implemented as of March 6, 2025, and remains under consideration.
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The US currently holds around 207,000 BTC from seizures, short of the proposed 1 million.
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There is ongoing debate about the feasibility and impact of such a reserve, with both support and criticism.
Background
The idea of the US acquiring 1 million bitcoins stems from the BITCOIN Act of 2024, introduced by Senator Cynthia Lummis, which proposes establishing a Strategic Bitcoin Reserve. President Donald Trump has also expressed support for a crypto strategic reserve, including bitcoin, as part of his administration’s policies. However, as of now, this is a planned action, not a completed one, and involves legislative and executive steps that are still in progress.
Current Status
As of March 6, 2025, the BITCOIN Act has been introduced but not passed, and Trump’s recent statements suggest active consideration of a crypto reserve. The US government’s current bitcoin holdings are significantly less than 1 million, primarily from law enforcement seizures, indicating that any acquisition to reach 1 million would require additional purchases.
Unexpected Detail
An unexpected aspect is that Trump’s plan also includes other cryptocurrencies like ETH, XRP, SOL, and ADA in the reserve, not just bitcoin, which broadens the scope beyond the user’s focus on BTC.
Survey Note: Detailed Analysis of US Bitcoin Reserve Plans
The prospect of the United States acquiring 1,000,000 bitcoins (BTC) for its reserve has garnered significant attention, driven by legislative proposals and presidential endorsements. This note provides a comprehensive overview of the current status, historical context, and implications, based on recent developments and data as of March 6, 2025.
Legislative Proposal: The BITCOIN Act of 2024
The BITCOIN Act of 2024, formally titled the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024,” was introduced by Senator Cynthia Lummis on July 31, 2024, during the 118th Congress All Info for S.4912 – 118th Congress. The act mandates the establishment of a Strategic Bitcoin Reserve, requiring all bitcoin held by federal agencies to be transferred to the Treasury and proposing the purchase of up to 200,000 bitcoins annually over five years, totaling 1 million bitcoins. This would be held for at least 20 years, with funding mechanisms including adjustments to Federal Reserve remittances and revaluation of gold certificates The U.S. Government Is One Step Closer To Holding 1 Million Bitcoins. As of March 6, 2025, the act was referred to the Senate Banking Committee but has not been passed, and given the transition to the 119th Congress starting January 3, 2025, it may need reintroduction Crypto Might Get Reality Check from Friendly U.S. Congress. However, there is speculation it could come to a vote early in the 119th Congress, with potential support from the new Senate Banking Committee Chair, Senator Tim Scott The U.S. Government Is One Step Closer To Holding 1 Million Bitcoins.
Presidential Support and Executive Actions
President Donald Trump has actively supported the idea of a crypto strategic reserve, aligning with the bitcoin reserve proposal. On March 2, 2025, Trump posted on Truth Social, stating his January executive order on digital assets directed the creation of a Crypto Strategic Reserve including BTC, ETH, XRP, SOL, and ADA Trump Sparks Crypto Rally by Saying More Coins to Be in Reserve. Earlier, on January 23, 2025, he signed an executive order establishing a working group on digital assets, chaired by David Sacks, his “AI and Crypto Czar,” to explore such a reserve, though details on implementation, including the exact amount of bitcoin, remain unclear Trump orders crypto working group to draft new regulations, explore national stockpile. This executive action has fueled market speculation, with bitcoin prices reacting positively, but analysts are divided on whether congressional approval is necessary, with some suggesting the Treasury’s Exchange Stabilization Fund could be used What is Trump’s Crypto Reserve Plan?.
Current US Government Bitcoin Holdings
The US government currently holds approximately 207,000 to 212,847 bitcoins, primarily acquired through law enforcement seizures related to criminal activities like the Silk Road and Bitfinex hacks US gov’t among states with largest Bitcoin holdings — Arkham. This is significantly less than the proposed 1 million, meaning the plan would require purchasing an additional 793,000 bitcoins. The value of these holdings, at current prices around $90,000 to $96,000 per BTC Bitcoin Price Today, BTC to USD Live Price, Market Cap & Chart, is approximately $18.63 billion to $20.43 billion, highlighting the scale of the proposed acquisition, which could cost $71.37 billion to $76.08 billion for the additional amount 1 Million Bitcoins (BTC) to US Dollars (USD) – Currency Converter.
Funding and Feasibility
The BITCOIN Act proposes funding through Federal Reserve remittances, allocating the first $6 billion annually from 2025 to 2029 for the Bitcoin Purchase Program, and revaluing gold certificates to raise funds Senator Lummis files ‘Bitcoin Act of 2024’ bill proposing a US strategic BTC reserve. Critics, like George Selgin from the Cato Institute, argue this is an accounting trick that may not benefit taxpayers, questioning the financial strategy Trump wants to commit the U.S. to bitcoin. Here’s what might happen if he does.. The purchase of such a large amount could also impact market prices, potentially driving up bitcoin’s value due to demand, which is a concern for market stability The U.S. Government Is One Step Closer To Holding 1 Million Bitcoins.
Controversy and Market Reactions
The proposal has sparked debate. Supporters, including crypto enthusiasts, see it as a move to position the US as a bitcoin superpower, potentially reducing national debt and strengthening the dollar Trump Confirms Bitcoin Reserve Plans—$15 Trillion Price Boom Predicted. Critics, including some pro-Trump tech figures like Tyler Winklevoss, question the inclusion of other cryptocurrencies like XRP, SOL, and ADA, arguing they are unsuitable for a strategic reserve Pro-Trump techies enraged by president’s crypto reserve announcement, causing early rift. Market reactions have been volatile, with bitcoin prices surging post-announcements but also facing concerns about potential sell-offs impacting prices if the reserve is used to pay down debt Why Trump’s Crypto Reserve Plan Has Experts Worried.
Comparative Context
Globally, governments hold about 2.5% of the total bitcoin supply, with the US leading at around 212,847 BTC, followed by the UK and Germany Governments Now Hold 2.2% of All Bitcoin. El Salvador, the first to adopt bitcoin as legal tender, holds 5,717 BTC, showing varied approaches Top Government Bitcoin Holders: US, UAE, El Salvador, and More. The US proposal to hold 1 million bitcoins would represent about 5% of the total supply, a significant concentration, raising concerns about market concentration risk The US may replace part of the gold reserve with Bitcoin.
Table: Key Details of Bitcoin Reserve Proposal
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Aspect
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Details
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Proposed Amount
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1,000,000 BTC
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Current US Holdings
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~207,000 to 212,847 BTC (from seizures)
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Proposed Acquisition Period
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5 years, up to 200,000 BTC annually
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Funding Mechanism
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Federal Reserve remittances, gold certificate revaluation
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Legislative Status
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Introduced (BITCOIN Act of 2024), not passed by March 6, 2025
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Presidential Support
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Confirmed, includes BTC and other cryptos (ETH, XRP, SOL, ADA)
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Estimated Cost (March 2025)
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~$90B to $96B at current prices ($90,000–$96,000/BTC)
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Conclusion
In summary, the US plans to acquire 1,000,000 BTC for its reserve, supported by the BITCOIN Act of 2024 and Trump’s executive actions, but as of March 6, 2025, this remains a proposal under consideration, not a completed action. The current holdings are far below the target, and implementation involves legislative and market challenges, with ongoing debate about feasibility and impact.
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