President Trump signed Executive Order 14178 on March 6, 2025, directing the creation of a US Strategic Bitcoin Reserve seeded with approximately 200,000 BTC already held by federal agencies from criminal forfeitures and civil seizures. The initial reserve was valued at roughly $17 billion at the time of signing. According to reports, the executive order prohibits selling Bitcoin from the reserve and directs the Treasury and Commerce departments to develop budget-neutral strategies for acquiring additional Bitcoin, meaning the government must find ways to buy more without drawing on taxpayer funds.
As of mid-2026, the US government holds approximately 198,000 BTC in the Strategic Bitcoin Reserve, valued at roughly $13 billion at current prices. The Bitcoin is held in cold storage wallets managed by the Treasury Department in coordination with custody providers, with specific custody arrangements not fully disclosed for security reasons. The separate Digital Asset Stockpile holds non-Bitcoin digital assets seized in federal cases, including Ethereum, stablecoins, and various altcoins, which may be liquidated at the government's discretion to acquire additional Bitcoin for the reserve.
At least 12 countries and several US states have introduced legislation or executive proposals to create their own Bitcoin reserves, including Brazil, the Czech Republic, Poland, Japan, and US states of Texas, Arizona, New Hampshire, and Oklahoma. According to reports, Brazil introduced a bill in November 2024 to create a Sovereign Strategic Bitcoin Reserve holding up to 5% of the country's international reserves, while New Hampshire became the first US state to sign a Bitcoin reserve bill into law, authorizing the state treasurer to allocate up to 5% of certain public funds to Bitcoin and digital assets with market capitalization above $500 billion.
Proponents argue that Bitcoin's fixed supply of 21 million coins and uncorrelated behavior with traditional reserve assets make it attractive for long-term value preservation. As reported, research suggests a 1% to 5% Bitcoin allocation in sovereign reserve portfolios could improve risk-adjusted returns over five-year periods since 2014. However, critics raise concerns about Bitcoin's volatility, concentration risk, and fiduciary duty issues, arguing that government holdings of a speculative asset violate fiduciary principles. The budget-neutral acquisition strategy involves revaluing gold certificates from the $42.22 per ounce statutory rate to market price to fund Bitcoin purchases without taxpayer funding.
The creation of the US reserve was initially bullish for Bitcoin's price because it signaled government legitimacy and removed approximately 200,000 BTC from potential market supply. According to reports, the no-sale provision is the key mechanism that permanently reduces available supply. However, critics argue that the reserve's existence could create concentration risk, as the US government represents roughly 1% of all Bitcoin that will ever exist. The competitive dynamic between countries is significant, with game theory suggesting that if one major economy builds a Bitcoin reserve, others face pressure to accumulate at current prices or potentially higher prices later. The reserve's future depends on political decisions and global adoption trends.
