Coinbase Proposal Seeks $100 Billion Bitcoin Acquisition Via Gold Revaluation

Sebastian Bea, President of Coinbase Asset Management, has proposed a significant shift in how the U.S. values its gold reserves, which could potentially free up nearly $100 billion in budget-neutral capital. This proposal, if implemented, could pave the way for a massive Bitcoin acquisition by the U.S. government, far ahead of market expectations.

Bea's idea revolves around a decades-old accounting oversight that values America’s 261.5 million-ounce gold reserve at an outdated price of $42.22 per ounce, a figure set in 1973. At today’s market rate of over $3,300 per ounce, this creates a nearly $900 billion disparity between the book value and the actual value of the gold reserves. Bea suggests that a simple legislative amendment to 31 U.S.C. § 5117 could allow the Treasury to revalue its gold holdings and issue higher-denomination gold certificates. The unrealized gains from this revaluation could then be directed into a sovereign-style fund, which could include Bitcoin acquisitions.

This revaluation would support a strategic Bitcoin reserve, echoing President Trump’s executive directive, without technically increasing the national debt. The proposal underscores the strategic stakes at play, as central banks are already engaged in record-breaking gold accumulation. A similar race for Bitcoin could unfold, potentially reshaping the digital reserve narrative at a sovereign level.

Bitcoin’s immediate future hinges on breaking the $95,000–$96,000 resistance level. Unless it does so decisively, the price is likely to remain range-bound. A clear breakout could ignite a new leg north, potentially reshaping the digital reserve narrative at a sovereign level and influencing global financial strategies.

In summary, Sebastian Bea's proposal signals a significant shift in how the U.S. could approach its gold reserves and, by extension, Bitcoin investments. A legislative change could pave the way for a substantial acquisition, impacting not only the U.S. but also the global cryptocurrency landscape. This move reflects a growing recognition of the potential of digital currencies and a willingness to explore new strategies for managing reserves, potentially leading to a more diversified reserve strategy that includes both traditional and digital assets.