In a stunning policy shift, the United States government has revealed ambitious plans to accumulate a massive stockpile of one million Bitcoin over the next five years. The initiative, first proposed by Senator Cynthia Lummis in July 2024 and later formalized through President Trump’s Executive Order in March 2025, establishes what’s being called the Strategic Bitcoin Reserve.
Here’s the kicker: they claim it won’t cost taxpayers a cent. Clever accounting, or financial wizardry? The funding comes through a patchwork of sources—revaluing Federal Reserve gold holdings, allocating $6 billion from Fed earnings, reducing surplus funds, and capitalizing on Bitcoin already seized from criminals. Uncle Sam already owns about 200,000 Bitcoin worth $17 billion. Not too shabby for a government that spent years warning everyone about crypto risks!
The plan calls for acquiring 200,000 Bitcoin annually until they hit the million-coin target. That’s nearly 5% of all Bitcoin that will ever exist. Talk about cornering the market! The Treasury Secretary will manage this digital Fort Knox through a decentralized network of secure storage facilities.
Uncle Sam’s digital gold rush aims to hoard 5% of all Bitcoin ever—a Fort Knox reborn for the crypto age.
And once they get the coins, don’t expect them to sell anytime soon—the proposal mandates a minimum 20-year holding period.
The government’s rationale? Bitcoin is “digital gold”—scarce, secure, and strategically valuable. This strategy aligns perfectly with Bitcoin’s appeal as a store of value similar to gold, offering protection against inflation due to its fixed maximum supply. Officials project this hoard could generate a mind-boggling $10 trillion annually by 2045 and potentially contribute $16-81 trillion to the Treasury over time. That could make a serious dent in the national debt.
The current system for handling government-owned crypto is a mess, with coins scattered across various agencies with no coherent management strategy. This new approach aims to fix that while positioning America as the global leader in cryptocurrency.
Who would’ve thought the government would become the ultimate Bitcoin hodler? Next thing you know, the Federal Reserve chair will be tweeting diamond hands emojis.
