Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve, a move that could spark a global race to accumulate the world’s leading cryptocurrency.Notably, the reserve will be funded entirely by Bitcoin seized in criminal and civil asset forfeiture proceedings, ensuring that its establishment incurs no cost to taxpayers.
President Donald Trump has announced the inclusion of several digital assets, Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA), in the nation’s crypto reserve. However, one asset is stealing the spotlight: Bitcoin. Trump took a step by signing an Executive Order (E.O.) to establish a Strategic Bitcoin Reserve, reinforcing his commitment to making the United States the crypto capital of the world.
Ryan Rasmussen, Head of Research at Bitwise Investments, highlighted the significance of this development in a post on X, stating, “The U.S. just established a Strategic Bitcoin Reserve, calling it a ‘digital Fort Knox for digital gold.’ Do you think China is now more or less likely to hold the 200,000 Bitcoin they own? What about the UK? Russia? Japan?”
Compared to Fort Knox, the U.S. bullion depository that secures vast amounts of the nation’s gold, Bitcoin is now being treated as a strategic asset akin to gold in the traditional financial system.
David O. Sacks, the White House AI & Crypto Czar, provided further details, explaining that the reserve will be funded using Bitcoin forfeited through criminal and civil asset seizures. This ensures that the initiative does not burden taxpayers. While estimates suggest that the U.S. government holds approximately 200,000 BTC, no official audit has ever confirmed the exact amount.
Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…
— David Sacks (@davidsacks47) March 7, 2025
Additionally, the Executive Order mandates a full accounting of all federal Bitcoin and digital asset holdings, bringing long-overdue transparency to the government’s crypto reserves.
Notably, Sacks clarified that Bitcoin stored in the reserve will not be sold. Instead, it will be safeguarded as a long-term store of value, mirroring how gold has been treated for decades.
A Global Accumulation Race?
With the U.S. officially recognizing Bitcoin as a strategic asset, the move could trigger a geopolitical scramble as nations rush to secure their own holdings. Some countries, like El Salvador, have already embraced Bitcoin, with the Central American nation now holding 6,101.18 BTC. Others may now see Bitcoin as a reserve asset, particularly those looking to hedge against the U.S. dollar’s dominance or protect themselves from potential economic sanctions.
Energy-rich nations such as Russia and Iran could accelerate their Bitcoin mining operations, effectively converting their natural resources into digital wealth. As we reported, Belarus is already a step ahead, its President has instructed Energy Minister Alexei Kushnarenko to develop the country’s crypto mining industry, positioning Belarus as a future player in the Bitcoin adoption.
Meanwhile, despite banning Bitcoin trading, China still exerts influence over significant mining operations. If a global Bitcoin reserve race unfolds, Beijing may be forced to reconsider its stance to maintain its competitive edge. Unlike gold, which has been accumulated over centuries, Bitcoin’s supply is fixed at 21 million coins. If sovereign nations start competing to stockpile BTC, scarcity could drive demand and send prices soaring.
Even corporations are aggressively accumulating Bitcoin. MicroStrategy, led by Michael Saylor, currently holds 499,096 BTC, valued at $43.97 billion, according to the Bitcoin Treasuries. At the time of writing, Bitcoin is trading at $88,127, down 3.58% in the last 24 hours but still up 11.33% over the past week.
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