U.S. Government Considers Expanded Bitcoin Reserve Policy

According to ShibDaily, Alex Thorn, Head of Research at Galaxy Digital, has predicted potential developments in the U.S. government's approach to Bitcoin reserves. Thorn anticipates that while there will be discussions about an expanded Bitcoin reserve policy, the U.S. government will not purchase additional Bitcoin in 2025. Instead, the focus will be on managing and protecting its existing Bitcoin holdings. Currently, the U.S. government holds approximately 183,850 BTC, valued at $17.382 billion, according to blockchain analytics platform Spot on Chain. These holdings are spread across various identified wallet addresses. In July 2024, Wyoming Senator Cynthia Lummis introduced the Bitcoin Act 2024, which proposes incorporating Bitcoin as a reserve asset in the U.S. Treasury. The act outlines a plan for the government to purchase 200,000 BTC annually over five years, aiming to accumulate a total of 1 million BTC. These holdings would be maintained in a strategic reserve for at least 20 years, indicating a potential shift in the nation's cryptocurrency strategy. In addition to government actions, Galaxy Digital analyst "JW" suggested that up to five Nasdaq 100 companies might integrate Bitcoin into their balance sheets. He also noted that a similar number of nation-states could adopt Bitcoin in their sovereign wealth funds. JW highlighted that competition among nation-states, particularly those unaligned with the U.S. or with large sovereign wealth funds, could drive the adoption of Bitcoin acquisition strategies. Ohio has recently joined the list of states exploring Bitcoin integration into treasury reserves, following a new bill introduced by House Republican leader Derek Merrin. Furthermore, Samuel Armes, President of the Florida Blockchain Business Association, announced plans for Florida to establish a strategic Bitcoin reserve starting in 2025. Florida intends to leverage its $185.7 billion pension fund by allocating a small portion to Bitcoin as a hedge against inflation. Armes emphasized that even a 1% allocation could result in approximately $1.87 billion invested in Bitcoin. This article is intended for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.