President Donald Trump signed an executive order Thursday to establish a strategic bitcoin reserve, a move aimed at solidifying the federal government’s stake in digital assets.
The order was signed a day before a high-profile White House meeting with cryptocurrency industry executives.
The reserve will be initially funded using 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 via a post on the social media platform X.
Friday’s crypto summit at the White House is expected to serve as the official platform for Trump to unveil his broader vision for the reserve, which will include four additional digital assets: bitcoin, ether, XRP, solana, and cardano. The president’s announcement earlier this week of these five cryptocurrencies led to a surge in their market value.
The specifics of how the reserve will operate and its benefits for taxpayers remain unclear. Sacks assured that the government would implement a strategy to maximize the value of its holdings but did not provide details. He emphasized that bitcoin in the reserve would not be sold, likening it to a “digital Fort Knox.”
The executive order also directs the Treasury and Commerce departments to devise budget-neutral methods for acquiring additional bitcoin without imposing extra costs on taxpayers. Additionally, the U.S. will maintain a separate “Digital Asset Stockpile” for other forfeited cryptocurrencies, though no new purchases will be made beyond those acquired through legal seizures.
Following Sacks’ announcement, bitcoin’s price briefly dropped more than 5% to below $85,000 before recovering to $88,109. Earlier optimism surrounding Trump’s crypto-friendly policies had pushed bitcoin to a record high of $109,071.86 in January.
Supporters argue that the reserve could benefit taxpayers by capitalizing on the long-term growth of digital assets. Sacks estimated that the U.S. government holds approximately 200,000 bitcoin and that previous premature sales of the asset had cost taxpayers $17 billion. However, these figures remain unverified.
Trump’s pro-crypto stance has drawn mixed reactions from conservatives and industry insiders, with some questioning whether the move disproportionately benefits affluent investors. The White House crypto summit is expected to provide further clarity on the administration’s digital asset strategy.
