Trump Backs Lummis' Bitcoin Act Aiming to Acquire 1 Million BTC

Senator Cynthia Lummis announced on May 2, 2025, that former U.S. President Donald Trump supports her proposed BITCOIN Act. This legislation aims to establish a strategic reserve of 1 million Bitcoins for the U.S. government, positioning the nation as a global leader in financial innovation while addressing the country's substantial national debt.

Lummis emphasized that the BITCOIN Act is a comprehensive solution to the nation's $36 trillion debt. She expressed gratitude for Trump's forward-thinking approach in recognizing and acting on this initiative. The senator highlighted that a Bitcoin reserve would not only benefit the U.S. economy but also empower ordinary Americans by giving them control over their own money. She believes that as Bitcoin usage increases, it will enhance the security and robustness of the financial system globally.

The proposed act mandates the U.S. government to acquire 1 million Bitcoins over a five-year period. This acquisition would make the U.S. government the largest single holder of Bitcoin, which has a capped supply of 21 million. Currently, the U.S. government holds approximately 198,000 BTC, primarily from seized assets, with a combined value of $19 billion. To reach the 1 million BTC target, the U.S. would need to invest around $76 billion in BTC at current prices. However, market dynamics suggest that prices are unlikely to remain stable, as this move would likely be seen as a major bullish signal.

The relatively illiquid supply of Bitcoin, compared to traditional assets, means that the price of Bitcoin would likely rise significantly once the acquisition starts. The U.S. would also have to compete with other major Bitcoin investors, such as Strategy, which has announced plans to invest $84 million in BTC. This competition could further drive up the price of Bitcoin, making the acquisition process more challenging and expensive.