President Trump Signs Executive Order to Establish Bitcoin Reserve, Crypto Stockpile

The Strategic Bitcoin Reserve became reality on Thursday, as President Donald Trump signed an Executive Order authorizing the creation of the digital asset stockpile. 

White House AI and Crypto Czar David Sacks announced the news on X, claiming the initiative would not "cost taxpayers a dime.”

“The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” Sacks wrote.

The price of the world's largest cryptocurrency has fallen $5.1 in the past hour to $85,868, defying, at least in the short-term, industry expectations that had been building in recent months.

The U.S. will not sell the Bitcoin it holds in the reserve, Sacks said, adding the reserve would act like a “digital Fort Knox,” which he likened to “digital gold.”

A strategic Bitcoin reserve is a stockpile of BTC held by an entity, such as a government or institution, for strategic or financial purposes. 

Sacks added that the executive order also establishes a separate Digital Asset Stockpile, consisting of digital assets other than Bitcoin forfeited in criminal or civil proceedings.

“The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings,” Sacks added.

In a bid to curry favor with the Bitcoin faithful, Trump promised to create a Bitcoin stockpile held by the U.S. Government in July 2024.

“PROMISES MADE, PROMISES KEPT,” Sacks tweeted.

Sacks also pointed to the U.S.’s estimated 200,000 BTC holdings, obtained through criminal seizures, bringing the initial estimated reserve value to $17.7 billion.

“Now the federal government will have a strategy to maximize the value of its holdings,” Sacks wrote.

Edited by Sebastian Sinclair