Strategic Bitcoin Reserve: What the U.S. Is Really Planning

case where the reserve and all the countries of the world are standing over him and almost praying - The Coinomist

In March 2025, the U.S. officially announced a strategic Bitcoin reserve, becoming the first nation to incorporate a digital asset into its national reserve policy.

On this page

In March 2025, U.S. President Donald Trump signed an executive order to establish a strategic Bitcoin reserve. The government aims to keep the fund budget-neutral, using only confiscated digital assets, primarily BTC seized through investigations and legal proceedings. 

Unlike previous policy, the U.S. no longer plans to sell these assets. Instead, it intends to hold them as a reserve instrument to support economic stability. No direct Bitcoin purchases are planned.

Supporters argue that Bitcoin’s fixed supply, decentralized nature, and long-term value potential position it as digital gold. Amid rising national debt, inflation risks, and declining trust in fiat currencies, they view BTC as an alternative tool to safeguard the financial system. 

However, critics see the initiative as speculative and politically motivated. Some frame it as a way for the government to legitimize its exposure to the growing crypto market.

What is the strategic Bitcoin reserve? How does it operate, and why is it drawing interest beyond the U.S.?

What Is the Strategic Bitcoin Reserve and Why Does the Government Need It?

The Strategic Bitcoin Reserve (SBR) is a state-held supply of BTC, comprising primarily confiscated coins that were previously subject to mandatory auction under existing laws. However, under the new U.S. policy, the government will no longer sell these assets. Instead, they will become a long-term component of the national financial strategy. 

The goal is to use Bitcoin as a safeguard against:

  • Inflation
  • Depreciation of the U.S. dollar
  • Potential future debt risks

The comparison to other reserves is deliberate. The concept draws on the model of the U.S. Strategic Petroleum Reserve, which the government has developed over decades as a response mechanism to energy crises. In this framework, Bitcoin acts as “digital gold,” an asset with a fixed supply (21 million coins), high liquidity, and independence from central issuers. 

These characteristics make it a potentially valuable instrument for countries seeking to diversify their reserves and enhance economic sovereignty.

Supporters of the initiative argue that Bitcoin can serve as a crisis buffer. Governments can sell it during budget shortfalls, use it as collateral, or hold it with the expectation of long-term price appreciation. This strategy is particularly relevant for nations facing high debt levels and inflationary pressures. 

Critics highlight Bitcoin’s volatility, limited utility in the real economy, and regulatory uncertainty. Nevertheless, the creation of such a reserve signals that Bitcoin is increasingly being viewed as part of a new financial architecture, rather than a purely speculative asset.

What Strategic Value Can a Crypto Reserve Offer the State?

A Bitcoin reserve could provide sovereign states with more than just a store of value; it may serve as a tool for economic stability. Compared to gold and fiat reserves, Bitcoin requires lower storage and security costs, while offering the potential for long-term price appreciation. This positions it as a potentially valuable asset for future fiscal planning.

Bitcoin’s key advantage lies in its long-term value growth. In the event of a budget deficit, the government could tap the reserve as a safety net. It could sell a portion of the assets, use them as collateral, or apply them in cross-border settlements—all without incurring additional tax or expenditure.

Another key factor is the political signal. Holding Bitcoin at the state level helps legitimize cryptocurrencies in the eyes of global investors. It may strengthen the U.S. position as a financial innovator and increase confidence in the digital economy, particularly as traditional reserves lose effectiveness.

Finally, a Bitcoin reserve also reduces dependence on external creditors. Unlike traditional assets, Bitcoin doesn’t depend on central bank policies or the decisions of individual countries. It cannot be frozen or devalued, offering the U.S. greater control over its reserves and exposure to debt.

Why the Strategic Crypto Reserve Draws Criticism

The proposal to create a state-backed cryptocurrency reserve has sparked debate. The primary argument from critics is Bitcoin’s high volatility—it can double in value over six months or lose half its value in just a few weeks. They view such instability as a serious concern for a strategic asset.

BTC price chart over time — The Coinomist.
BTC price chart shows both long-term growth and extended declines. Source: dropstab.com

A second point of criticism is ideological. Cryptocurrency was created as an alternative to state control. Ethereum co-founder Vitalik Buterin has stated that the idea of a national reserve contradicts the spirit of decentralization. When governments begin accumulating what was originally designed as an anti-establishment asset, it creates a clear tension.

Critics also express concern about government involvement in crypto markets. Some investors argue that the creation of a reserve amounts to an implicit endorsement of selected assets. By entering the market, the state could influence prices and benefit existing holders. This issue becomes particularly contentious when tokens are linked to specific interests or political figures.

Related: From Bulls to Ballers — Why Celebrities Are Flocking to Crypto

Additionally, debate has emerged around the potential inclusion of other cryptocurrencies in the reserve, from Ethereum and Solana to memecoins. For Bitcoin maximalists, this represents a dilution of the concept. They argue that BTC is the only truly decentralized asset, while other tokens are speculative instruments that do not merit strategic status.

How U.S. States Entered the Race for Bitcoin Reserves and What Followed

Following the announcement of the federal Bitcoin reserve, several U.S. states moved to follow suit. Between 2024 and 2025, dozens of regional lawmakers introduced proposals for their own versions of a strategic crypto reserve. In some states, the initiatives progressed into law; in others, they failed in committee.

Map of U.S. states by position on creating a Bitcoin reserve — The Coinomist.
U.S. states considering Bitcoin reserve legislation (in yellow), and those with no action or repealed proposals. Source: bitcoinlaws.io

New Hampshire was the first U.S. state to officially approve a Bitcoin reserve. The law permits investing up to 5% of state funds in Bitcoin and other digital assets with a market cap exceeding $500 billion. Custody must be handled through multisig wallets or regulated instruments—a strict but carefully considered approach.

Arizona took a more conservative route. The law prohibits the purchase of cryptocurrency with public funds. Instead, assets enter the reserve through airdrops and staking. This reduces risk and simplifies implementation, though it limits direct control over the assets.

Texas is also nearing approval. A bill has passed the lower chamber and may soon be signed by the governor. The proposal includes restrictions based on market capitalization and asset age to exclude speculative tokens.

Other states are moving forward in different ways:

  • Michigan, Kentucky, and North Carolina have introduced their own proposals, ranging from investments in Bitcoin ETFs to legal protections for node operators and miners.
  • Florida, Pennsylvania, Wyoming, and Montana have delayed or rejected similar bills, citing concerns about risk and infrastructure readiness.

The overall trend points to growing interest, though the path remains complex. For some, it is a chance to lead in a new financial era; for others, a political liability. Still, the very fact that Bitcoin is now part of state budget discussions signals a step toward the future.

How Other Countries Are Responding to the U.S. Strategy and the Global Outlook

The U.S. is not the first to integrate cryptocurrency into national policy. In 2021, El Salvador recognized Bitcoin as legal tender and began regularly adding to its crypto reserve. The country:

  • Acquired more than 5,500 BTC
  • Launched Bitcoin mining powered by geothermal energy
  • Initiated a campaign to attract digital investment 

As a result, El Salvador saw a rise in tourism, increased capital inflows, and growing international interest.

Related: Crypto Regulations in El Salvador

International attention toward Bitcoin is growing. Corporations such as U.S.-based Strategy (formerly MicroStrategy) and Japan’s Metaplanet are accumulating BTC as a strategic asset. Some experts view this as the beginning of a new race—those who secure a scarce asset early may gain an advantage in the emerging financial landscape. While no major economies have introduced an official equivalent to the SBR, the U.S. has set a clear benchmark.

Top 10 corporate BTC holders — The Coinomist.
MicroStrategy and Metaplanet’s rankings among the largest corporate BTC holders. Source: bitbo.io

The global signal is clear: Bitcoin is no longer a fringe asset, but a component of sovereign strategy. The next step could be the development of international infrastructure for digital reserves, involving not only corporations but also nation-states.

The Creation of the SBR Marks a Shift in the Nation’s Approach to Storing Value

The establishment of a strategic Bitcoin reserve marks a shift in paradigm. Bitcoin, once associated with anonymous transfers and high-risk speculation, is now being incorporated into official state reserves. For the first time, the U.S. is treating a digital asset as a tool for economic stability.

This step initiates several developments: 

  • A reassessment of reserve policy
  • The legitimization of crypto in public finance
  • The start of a competitive race among states and nations

Some view it as a practical response to changing conditions; others see it as a political experiment with unpredictable outcomes.

Regardless of interpretation, the trend is clear: Bitcoin is no longer on the sidelines. It is entering the core of the economy, with laws, reporting, budgets, and strategy. While volatility remains a concern, its role in policy is no longer theoretical. 

The financial world is changing, and Bitcoin is no longer a bystander. It is a participant.

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author
Uber Expands AI Ambitions with Global Data-Labeling Platform

Uber Expands AI Ambitions with Global Data-Labeling Platform

With major tech firms rethinking their data partnerships, Uber moves fast to fill the gap in enterprise AI training data.

Eric Hash
TikTok Denies $300M Trump Memecoin Purchase by Its Chinese Owners

TikTok Denies $300M Trump Memecoin Purchase by Its Chinese Owners

TikTok rejects allegations that ByteDance purchased $300M worth of Trump memecoins, responding to bribery accusations from a U.S. Congressman.

Dmytro Psevdonimenko
Fake Aave Ads on Google Search Fuel Phishing Scams

Fake Aave Ads on Google Search Fuel Phishing Scams

On June 20, 2025, Scam Sniffer flagged fake Aave ads in Google search that lead victims to phishing sites copying the Aave UI and draining funds.

Walker Stevenson
a16z Crypto Dominates Weekly Crypto Funding with $81 million in Deals

a16z Crypto Dominates Weekly Crypto Funding with $81 million in Deals

Crypto funding hit $144 million this week – and a16z Crypto was at the center, investing $81 million in key deals in emerging blockchain technology.

Eric Hash
From Haters to Hodlers: 5 Billionaires Who Converted to Bitcoin

From Haters to Hodlers: 5 Billionaires Who Converted to Bitcoin

Some billionaires once dismissed Bitcoin as unreliable and pointless. Years later, they changed their minds, started investing, and now see crypto as a key part of the future financial system.

Daryna Nesterenko
From Politics to Protocols: Decoding Eric Trump’s Unexpected Crypto Headlines

From Politics to Protocols: Decoding Eric Trump’s Unexpected Crypto Headlines

Politics continues to move into crypto, and Eric Trump’s involvement sparks debate. What drives his interest?

Daryna Nesterenko
Who Is Tomasz Stańczak? Inside the New Leadership of the Ethereum Foundation

Who Is Tomasz Stańczak? Inside the New Leadership of the Ethereum Foundation

Tomasz Stańczak is one of the co-executive directors at the Ethereum Foundation, contributing to strategic planning and operational oversight to support Ethereum’s long-term growth.

Anahit Avetisyan

Might Be Interesting

No posts found.

Crypto and the Fed: What the Interest Rate Decision Means

Crypto and the Fed: What the Interest Rate Decision Means

Tonight, the Federal Reserve will announce its decision on the interest rate. We explain how this impacts the economy, cryptocurrencies, and why everyone is watching closely.

Iaroslava Kramarenko
While Altcoins Bleed, WhiteBIT Coin (WBT) Surges to a New ATH

While Altcoins Bleed, WhiteBIT Coin (WBT) Surges to a New ATH

WBT climbed to $50 and set a new ATH while most altcoins remain under pressure. The token’s performance reflects strong tokenomics, a long-term strategy, utility, and brand power.

Anton Kryshtal
MORE
Crypto Spam Attacks: How to Save Your Deposit and Your Nerves

Crypto Spam Attacks: How to Save Your Deposit and Your Nerves

Unexpected airdrops, shady tokens in your wallet, pushy Discord messages, and weird invites to NFT projects—let’s learn how to stay afloat in a stream of digital noise.

Iaroslava Kramarenko
Why Crypto Trading Isn’t Gambling (Even If It Feels That Way Sometimes)

Why Crypto Trading Isn’t Gambling (Even If It Feels That Way Sometimes)

Is crypto trading just digital gambling? At first glance, the line seems thin. But they’re worlds apart: one relies on analysis and strategy, the other on luck and addiction.

Iaroslava Kramarenko
MORE