Bitcoin News Today: Senator Lummis Alarmed by 80% Bitcoin Reserve Sell-Off

Senator Cynthia Lummis (R-WY) has expressed her concern over recent reports suggesting that the U.S. government may hold significantly less Bitcoin in its reserve than previously believed. The controversy began when Bitcoin Magazine Chairman David Bailey offered a $10,000 bounty to any journalist who could uncover the exact amount of Bitcoin held by the U.S. government. Independent journalist Lola Leetz responded with documents allegedly from the United States Marshals Service, revealing that the government's Bitcoin holdings were valued at just $3.44 billion, far less than the estimated $7.2 billion based on an assumed 200,000 Bitcoin reserve.

Lummis, known for her pro-crypto stance, took to social media to voice her alarm. "I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins," she wrote. "If true, this is a total strategic blunder and sets the United States back years in the Bitcoin race." The senator's comments highlight the potential strategic implications of the alleged reduction in the U.S. Bitcoin reserve, which could impact the country's standing in the global digital asset landscape.

The U.S. government's Bitcoin reserve was formally established in March 2025 through an executive order by President Donald Trump. The order aimed to harness the power of digital assets for national prosperity. At the time, White House AI and Crypto Czar David Sacks estimated that the U.S. government held around 200,000 Bitcoin, although no formal audit had been completed to verify this figure. The recent revelations suggest a significant discrepancy between the estimated and actual holdings, raising questions about the transparency and management of the government's digital assets.

The White House has yet to publicly comment on the matter, leaving the crypto community and policymakers awaiting further clarification. The situation underscores the need for greater transparency and accountability in the management of government-held digital assets, as well as the potential impact of such holdings on national economic strategy and global competitiveness. Lummis' concerns reflect a broader sentiment within the crypto community about the importance of strategic foresight and prudent management in the rapidly evolving world of digital currencies.