President Donald Trump has officially signed an executive order creating a United States Strategic Bitcoin Reserve, according to an announcement from White House AI and Cryptocurrency Advisor David Sacks.

Self-Funded Reserve Strategy

The new strategic reserve initiative comes with a distinctive funding approach. According to Sacks’ March 7 statement on his official X platform account, the reserve will be entirely funded using Bitcoin that has been seized by federal agencies through asset forfeiture proceedings. This funding mechanism ensures that American taxpayers will not incur any costs associated with establishing the reserve.

Current Federal Cryptocurrency Holdings

While precise figures remain unconfirmed, Sacks estimated that the federal government currently holds approximately 200,000 Bitcoin. However, he acknowledged that no comprehensive audit of these holdings has been conducted to date. The executive order specifically mandates a complete accounting of all federal digital asset holdings.

“Digital Fort Knox” Preservation Mandate

A key provision in the executive order prohibits the sale of Bitcoin placed in the reserve. Sacks characterized this restriction as creating a “digital Fort Knox,” establishing a preservation approach similar to that used for strategic precious metal reserves.

Broader Cryptocurrency Strategy

The executive order aligns with President Trump’s stated objective of positioning the United States as the “crypto capital of the world” and enhancing the nation’s standing in the cryptocurrency industry.

Beyond Bitcoin, the order establishes a U.S. Digital Asset Stockpile to contain other seized digital currencies. Importantly, the government will not actively purchase additional cryptocurrencies outside of these forfeiture acquisitions.

Future Acquisition Explorations

The Trump administration has directed the Treasury and Commerce Departments to investigate budget-neutral methods for acquiring additional Bitcoin without imposing costs on taxpayers. Sacks highlighted that previous government Bitcoin sales resulted in approximately $17 billion in lost value for taxpayers.

Market Response and Potential Impact

At the time of reporting, Bitcoin was trading at approximately $86,600, showing a 3% decline over the previous 24 hours, with markets not yet showing a significant response to the announcement.

Analysts suggest the new policy could serve as a positive long-term catalyst by potentially reducing government sell-offs of Bitcoin. This regulatory approach may ultimately tighten supply and reinforce Bitcoin’s position as a strategic asset comparable to gold, particularly if the government transitions from selling to accumulating the cryptocurrency.