The idea of the US Treasury allocating $200 billion to Bitcoin (BTC) purchases through the issuance of “Bitcoin-Enhanced Treasury Bonds” is gaining traction. The bond structure, known as “₿ Bonds,” aims to refinance a portion of the $14 trillion federal debt maturing in the next three years.
Under this proposal, each bond would allocate 90% of proceeds to conventional government financing and 10% towards BTC acquisition, creating a Strategic Bitcoin Reserve without direct taxpayer funding. Investors in ₿ Bonds would receive a 1% annual interest rate, along with exposure to Bitcoin-linked upside through a structured payout at bond maturity.
The payout would include full principal repayment, fixed interest, and a performance-based Bitcoin-linked component. If Bitcoin prices remain steady over the 10-year maturity, the US could save around $354 billion in present value terms after subtracting the $200 billion BTC allocation from projected interest savings.
The proposal also includes tax-exempt treatment for interest payments and Bitcoin-linked gains, making ₿ Bonds a retail-friendly savings product. With an estimated participation by 132 million US households, the average per-household investment could reach $3,025.
Institutional investors could use ₿ Bonds as a compliant channel to gain Bitcoin exposure while preserving the security profile of Treasury securities. The rollout plan involves a phased implementation strategy and risk management protocols to cover Bitcoin price volatility, market execution, operational security, and regulatory classification.
The proposed $200 billion in BTC purchases would fund a Strategic Bitcoin Reserve established by an executive order in March 2025, which classified Bitcoin as “digital gold.” The reserve would function as a store of value with assets held in secure custody.
Modeling scenarios based on historical Bitcoin performance suggest that a Bitcoin reserve could accumulate trillions in value. The initiative is seen as an alternative to traditional austerity or tax-based debt solutions, potentially reducing or offsetting future federal debt obligations.
Overall, the proposal positions the US as a global leader in integrating Bitcoin into sovereign finance, with implications for financial resilience, debt management, and digital asset market development.