U.S. Strategic Bitcoin Reserve – Aiming for 1 Million BTC

In a development that blurs the line between crypto and national finance, the White House threw its weight behind establishing a U.S. Strategic Bitcoin Reserve. On May 2, Senator Cynthia Lummis announced that President Donald Trump supports the proposed BITCOIN Act, legislation that would authorize the government to accumulate 1 million bitcoins as a strategic reserve. This initiative positions Bitcoin alongside traditional assets like gold and oil in terms of strategic importance and is pitched to reinforce U.S. leadership in digital finance while potentially addressing part of the $36 trillion national debt. The plan calls for acquiring 1 million BTC over five years, far above the roughly 198,000 BTC (≈$19 billion) the U.S. Treasury currently holds (mostly from seized assets). At current prices, the full accumulation would cost an estimated $75–80 billion, though such large purchases could drive prices higher over time. Supporters argue this move would solidify Bitcoin’s status as “digital gold” for the nation, while critics caution about volatility and political motivations.

Why it matters: A major government openly accumulating Bitcoin is unprecedented – it’s a strong vote of confidence in cryptocurrency’s future. The U.S. government becoming potentially the largest Bitcoin holder (1 million BTC is about 5% of the total supply) would not only put upward pressure on the asset’s price but also lend Bitcoin a new level of legitimacy as a reserve asset. This U.S. initiative may spur other countries to consider similar reserves or at least more accommodating crypto policies to avoid falling behind. For investors worldwide, including in Australia, the message is clear: digital assets are entering mainstream strategic finance. Australia’s government isn’t (yet) buying crypto for reserves, but the Australian crypto industry is urging regulators to take note. The move by the U.S. reinforces the idea that crypto is here to stay, potentially accelerating regulatory clarity and institutional adoption in other jurisdictions. For Australian investors, a government-driven demand for Bitcoin internationally is a bullish signal – it underscores scarcity and long-term value, strengthening the case for strategic allocation to digital assets in a diversified portfolio.