The U.S. Government Bitcoin Holdings: A New Bill Aims to Expand the Treasury’s Cryptocurrency Portfolio to 1 Million BTC.
As of March 12, the U.S. government currently holds an impressive $16 billion worth of Bitcoin, amounting to 195,234 BTC. This significant amount has raised eyebrows, especially as the government is contemplating further expanding its Bitcoin portfolio under a newly proposed bill. This legislation, which has been introduced by Rep. Nick Begich, seeks to acquire an additional 1 million BTC over the next five years, significantly boosting the government’s cryptocurrency holdings.
The House Strategic Bitcoin Bill seeks to make the US government a key player in the Bitcoin market by acquiring around 5% of Bitcoin’s total supply. With Bitcoin’s current market price, this purchase would be worth about $110 billion. This plan represents a bold move by the US government, preparing it to wield significant power in the Bitcoin market in the future.
The United States government’s Bitcoin holdings are part of a larger digital asset strategy that includes Ethereum, stablecoins, and yield-bearing investments. A recent Nansen analysis estimates that the current crypto portfolio is worth $16 billion, with Ethereum holdings valued at $4.6 million. The portfolio also contains other digital assets, such as USDC and DAI, which diversify the government’s cryptocurrency exposure.
If this new bill is passed, the government’s Bitcoin reserves may exceed those credited to Satoshi Nakamoto, the pseudonymous founder of Bitcoin. Nakamoto is thought to own over 1.1 million BTC, and if the measure passes, the government’s holdings might match or even exceed this total. This would give the US a strong position in terms of Bitcoin liquidity and market stability. The consequences are far-reaching, including the likelihood of increased influence on Bitcoin’s market value and long-term price stability.
For cryptocurrency fans, investors, and market analysts, the US government’s expanding Bitcoin holdings could have a big impact on market sentiment. These advances are likely to attract the attention of institutional investors, regulators, and others in the field.
The bill’s passage is uncertain because it is still in the early stages of congressional consideration. However, it is evident that the United States government is establishing itself as a significant player in the cryptocurrency field, with Bitcoin at the centre of its digital asset strategy. The consequences for the US economy and the global bitcoin market are significant.
