Trump signs executive order to form strategic Bitcoin reserve
Donald Trump (photo: Getty Images)
US President Donald Trump has officially created a Strategic Bitcoin Reserve. The relevant executive order has already been signed, according to Bloomberg and a post on social media X by David Sacks, the White House's chief specialist on AI and cryptocurrencies.
According to Bloomberg, after the signing of the executive order, Bitcoin and other tokens fell, as Sacks stated that taxpayer money would not be used to purchase cryptocurrencies.
Sachs explained that the reserve would be capitalized using Bitcoin already owned by the federal government, which had been confiscated through criminal or civil proceedings, and the US would not sell any cryptocurrency added to this reserve.
"The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings," he wrote.
Trump's executive order authorizes the Secretaries of the Treasury and Commerce to develop budget-neutral strategies for acquiring additional Bitcoin, provided this does not result in additional costs for American taxpayers.
Sacks added that the same executive order also establishes another reserve consisting of other digital assets besides Bitcoin.
Bloomberg reports that Bitcoin dropped approximately 4% to $86,000 at 8:10 PM New York time on Thursday. Four other tokens that Trump mentioned he wanted to include in the US reserve – XRP, Ether, SOL, and ADA – also fell by at least 3.5%.
On the last day of February 2025, the price of Bitcoin dropped by 25% compared to its all-time high. The cause was Asian trading, with traders reversing bets made after Donald Trump was elected US president.
