US Government Explores Bitcoin Accumulation Strategies Amid 30% 2025 Purchase Chance

In a recent development, the US government has been directed to explore innovative strategies to accumulate Bitcoin without increasing the federal budget or burdening taxpayers. This directive follows President Donald Trump’s executive order to create a Strategic Bitcoin Reserve earlier this month. However, analysts from a prominent financial news outlet see a relatively slim chance of the federal government purchasing Bitcoin this year.

According to the legal analyst, there is just a 30% chance that the U.S. federal government will buy Bitcoin in 2025 to build up its Bitcoin trove. The analyst believes the only feasible way this can happen is through using the Exchange Stabilization Fund (ESF). Traditionally, the ESF handles foreign currency operations, gold, and other financial instruments for the U.S. Treasury. In the case of Bitcoin, the Treasury could purchase a debt instrument that’s settled in BTC upon maturity — effectively putting the top crypto into the government’s hands without directly purchasing it on the open market.

The analyst does not think Congress can approve any serious overhaul of existing laws to allow BTC acquisition in the next two years. This cautious approach reflects the regulatory and political challenges that Bitcoin and other digital currencies face in gaining widespread acceptance from governmental bodies. The volatile nature of Bitcoin and the lack of regulatory clarity make it a risky investment for governments, particularly one as large and influential as the US.

President Trump signed an Executive Order on March 6 to establish a Strategic Bitcoin Reserve consisting of BTC forfeited in criminal and civil proceedings. The order also indicated that the government would acquire more Bitcoin in the future through “budget-neutral” methods. Notably, a huge trove of Bitcoin already sits in federal hands. Law enforcement agencies have seized massive amounts of BTC from criminals, today estimated to be nearly 200,000 coins — a sum worth about $16.6 billion.

The government has typically auctioned these assets off and put the proceeds in the general fund. But the President’s EO shifted that approach, ordering agencies to deposit confiscated Bitcoin directly into the US. Treasury instead of offloading it onto the market. Michael Saylor, whose publicly traded company Strategy (formerly known as MicroStrategy) already owns the largest Bitcoin stash in the world, wants the U.S. government to purchase a quarter of Bitcoin’s entire supply over the next decade for its Strategic Bitcoin Reserve. Until 2045, Saylor claimed the reserve could generate between $16 trillion and $81 trillion for the US Treasury, potentially eliminating the ballooning national debt.

Despite the potential benefits, the expert's assessment also touches on the broader implications of government involvement in the cryptocurrency market. If the US government were to invest in Bitcoin, it could potentially legitimize the digital currency and encourage other institutions to follow suit. However, the expert cautions that such a move would also require significant regulatory changes and oversight to ensure the stability and security of the financial system. The analysis further explores the potential benefits and drawbacks of government investment in Bitcoin. On one hand, it could provide a boost to the cryptocurrency market and encourage innovation in the financial sector. On the other hand, it could also introduce new risks and challenges, particularly in terms of regulatory compliance and market volatility. The expert concludes that while there is potential for government involvement in the cryptocurrency market, it is unlikely to happen in the near future due to the numerous obstacles that need to be overcome.