Bo Hines, the executive director of the President’s Council of Advisers for Digital Assets, made a significant announcement at the 2025 Bitcoin Conference in Las Vegas on May 27. He revealed that the federal government will be holding onto every Bitcoin (BTC) already in custody and will be exploring new ways to increase its Strategic Bitcoin Reserve in a budget-neutral manner.
Describing Bitcoin as “digital gold,” Hines emphasized the importance of permanently holding onto the asset due to its scarcity. He differentiated between the Strategic Bitcoin Reserve (SBR) and the broader Digital Assets National Stockpile, highlighting that the SBR will have an absolute prohibition on disposals. This distinction was made clear in an executive order signed by President Donald Trump on March 6.
Hines stated firmly, “We’re not going to sell any Bitcoin that we possibly have in the US government, period.” He also noted that the US government recognizes Bitcoin as a commodity with intrinsic stored value, justifying the need for a separate reserve for the asset.
Unlike setting a specific numeric target for federal holdings, Hines mentioned that there is no cap on the amount of Bitcoin that the government aims to accumulate. He expressed that the goal is to acquire as much as possible through budget-neutral means, with a focus on exploring various options to achieve this objective.
During the conference, suggestions were made on how to add Bitcoin to the reserve without relying on taxpayer funds. One proposal involved implementing a royalty tied to Bitcoin mining in the US, where miners would contribute a fraction of their block rewards in BTC to a government wallet, facilitating the accumulation process. Additionally, it was suggested that crypto mining plants utilizing wasted methane would be exempt from taxes.
Another idea presented by Galaxy Digital’s head of research, Alex Thorn, involved selling altcoins from the Digital Asset Stockpile and using the proceeds to acquire more BTC. This method, according to Thorn, is elegant as it avoids the need to touch cash, allowing for a seamless transition of assets without attracting unwanted attention.
As the government continues to explore innovative ways to grow its Strategic Bitcoin Reserve, the focus remains on increasing holdings in a manner that is financially sustainable and beneficial for the long-term. The discussions at the conference shed light on the evolving landscape of digital assets and the strategic importance of Bitcoin in the government’s reserve portfolio.