The creation of the U.S. Strategic Bitcoin Reserve positions bitcoin as a strategic asset akin to petroleum or gold. With various options to fund it, the SBR aims to secure America's economic leadership in the digital age.
Until recently, bitcoin was predominantly held by individuals and institutions, but today, governments are beginning to stake their claim. Earlier this year, President Trump made headlines by signing an executive order establishing a Strategic Bitcoin Reserve (SBR). At the 2025 Bitcoin Conference, Fred Thiel of MARA, Matt Pines of the Bitcoin Policy Institute, and Matthew Sigal of VanEck dove into the purpose, urgency, and strategy of the SBR, revealing how bitcoin could transform the future of U.S. financial policy.
Why Create the Strategic Bitcoin Reserve & Why Now?
The SBR executive order directs the Departments of the Treasury and Commerce to identify ways of acquiring more bitcoin without imposing additional costs on taxpayers. It also instructed all executive agencies to consolidate their current digital asset holdings into the reserve, with a commitment to not sell any of the bitcoin the U.S. government currently holds.
America has historically safeguarded strategic assets, like gold, petroleum, helium, and even Swiss cheese, to protect against supply shocks, geopolitical risks, or natural disasters. Similarly, the SBR will accumulate and hold bitcoin as a strategic asset akin to “digital gold.” With some countries now openly mining bitcoin, the U.S. can't afford to sit on the sidelines.
“A Strategic Bitcoin Reserve is a way for the U.S. to project power. Bitcoin is now becoming one of the largest asset classes in the world, and the U.S. needs to be able to defend bitcoin or use it offensively. The only way you can do that is if you hold a lot of it.” - Fred Thiel, Chairman & CEO of MARA
Fred compares it to the U.S. Strategic Petroleum Reserve, which protects the U.S. from major disruptions in oil supply, ensuring energy security and mitigating price shocks. Similarly, holding bitcoin allows the U.S. to assert economic power and a global advantage. Fred also advocates for expanding Bitcoin mining in the U.S. to maintain maximal control over the SBR and ensure that Americans can transact freely without interference from adversaries.
Funding the Strategic Bitcoin Reserve
How can the U.S. fund such a reserve without raising taxes or increasing the deficit? There are several viable courses of action:
- Mining Bitcoin: The U.S. government controls significant energy assets, such as hydro, natural gas, and renewables, via the military and departmental agencies. These resources could be optimized by using excess energy to generate bitcoin.
- Repurposing Funds: The Exchange Stabilization Fund, the Treasury’s contingency reserve, has $39 billion available, and according to Matt Pines, around $20 billion could be used to purchase bitcoin and applied to the SBR.
- Acquisitions: Reallocating small portions of existing revenue streams, like U.S. tariff collections, proceeds from Fannie Mae and Freddie Mac privatizations, and oil and gas royalty payments from companies that extract on public lands may also be viable methods of acquiring more bitcoin.
- Issuing “BitBonds”: The government could issue bonds that combine the security of conventional bonds with benefits from bitcoin’s potential growth. When issued, a portion of the proceeds from the bond sales would be used to purchase bitcoin. As they mature, a portion of the bond’s value or interest payments would be linked to bitcoin’s performance.
- Revaluing Gold Reserves: Gold held in the Federal Reserve is currently priced at roughly $42 per ounce, far below today's market value. Revaluing these assets to current market prices (around $3,400 per ounce as of June 2025) could unlock substantial capital to boost the SBR's holdings.
- Legislative Action: Congress could pass amendments allowing miners to operate on federal lands or mine with otherwise excess methane or flared gas, sustainably contributing bitcoin royalties to the reserve while reducing emissions and waste in the process.
Securing America's Digital Future: A New Chapter in U.S. Policy
Though some believe that the U.S. government acquiring bitcoin signals a weakening dollar, it may actually strengthen the dollar’s foundation in the digital age. During the Civil War, the U.S. printed unbacked paper money called greenbacks, shaking confidence in the dollar. To restore trust, Congress passed a law saying future debt would be backed by gold, strengthening the dollar by tying it to a scarce asset. The same principle applies to bitcoin today.
Today, U.S. citizens hold approximately 40% of the bitcoin supply, giving the U.S. a sizable advantage over most other nation states. Establishing a Strategic Bitcoin Reserve is about securing America’s economic and geopolitical future. Bitcoin is becoming the backbone of a modern financial framework. How quickly we act and how boldly we allocate will determine if America will remain a financial superpower in the digital age.
Watch the full panel discussion to see how the U.S. will fund the Strategic Bitcoin Reserve and stay up to date with the company’s latest performance metrics on our investor relations page.
About MARA
MARA (NASDAQ:MARA) deploys digital energy technologies to advance the world's energy systems. We believe Bitcoin mining is the most scalable and adaptable digital energy technology today, optimizing how energy is produced, delivered, and consumed. As the industry leader, we monetize excess energy and balance the grid with flexible power demand. We build, own, and operate power infrastructure to expand access to electricity and develop technology that drives efficiency across high-performance computing applications.
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