U.S. Explores Ways to Expand Strategic bitcoin Reserve
On March 6, 2025, an executive order established the U.S. Strategic Bitcoin Reserve. The order bans the government from selling or buying more bitcoins with taxpayer funds. But how will the U.S. acquire more BTC? Various methods are under consideration.
Bo Hines, President of the Presidential Council of Advisers for Digital Assets, shared insights during a recent interview with Anthony Pompliano. He highlighted two potential strategies for increasing the nationās bitcoin holdings without using taxpayer money.
Hines discussed the Bitcoin Act, proposed by Senator Cynthia lummis. This act aims to create a reserve similar to gold reserves, recognizing Bitcoin as a strategic asset. The act requires acquiring one million bitcoins within five years through budget-neutral means. One idea is revaluing gold certificates. Currently, these certificates are undervalued at $43 per ounce, while the market price is much higher. By revaluing these certificates, the U.S. could generate funds to buy more BTC.This approach involves updating the certificates to reflect the current gold price,which exceeds $3,000 per ounce.The Treasury could issue new certificates at fair market value, freeing up funds for BTC purchases. Critics like Craig Hemke argue this is an āaccounting trick,ā but it could still provide the needed capital. The act is gaining traction in Congress, seeking co-sponsors to push it forward.
Another method is tariff revenue. A 10% tariff could yield $2.2 trillion over nine years. This revenue could fund BTC acquisitions. Tariffs and gold revaluation are seen as efficient funding sources.
Bo hines also mentioned Bitcoin bonds, or BitBonds. These bonds would pay a fixed 1% annual interest in USD. Ninety percent of the proceeds would support the government, with the rest going to the reserve. This strategy could be a win-win, boosting the reserve without new spending.</p
