Strategic Bitcoin Reserve & Crypto Stockpile

President Trump’s executive order for a strategic Bitcoin (BTC) reserve marks a pivotal moment for the cryptocurrency industry, according to investment bank KBW in a Friday report.

The President has directed his administration to establish a Bitcoin Strategic Reserve to manage assets seized by the government. Additionally, he called for a stockpile of various digital assets.

KBW highlighted that the world’s largest superpower is now embracing several leading blockchain protocols. Bitcoin stands out, being treated exclusively as a reserve asset. The report confirms that no Bitcoin will be sold, and the government is exploring options to purchase more cryptocurrency.

According to KBW, the government currently holds approximately 198,000 Bitcoin, with about 55% set to be returned to Bitfinex, leaving around 86,000 tokens remaining in reserve.

While specific plans for accumulating more Bitcoin were not disclosed, KBW suggests potential strategies, including selling part of the U.S.’s $800 billion gold reserves to fund crypto purchases. Another option mentioned is the issuance of U.S. Treasury Bitbonds—these are treasury bonds that include a Bitcoin kicker, potentially lowering borrowing costs.

Moreover, the government might collaborate with U.S. miners, receiving Bitcoin royalties in exchange for tax breaks or incentives as highlighted in the report.

Read more: Market Experts Weigh In on Trump’s Strategic Bitcoin Reserve That Takes Out $17B in Potential Selling From BTC