The US Strategic Bitcoin Reserve

Key Takeaways

President Trump signed an EO last week to establish a Strategic Bitcoin Reserve
The US government’s digital asset holdings stem from criminal asset recovery
A US SBR will diversify national holdings, much like the gold reserve

‍

Digital Asset Commentary

The macro risk-off rally continues as concerns about economic growth and recession intensify. Bitcoin, still considered a risk asset by many, has not been immune to the downturn—despite last week’s Executive Order establishing a Strategic Bitcoin Reserve (SBR) and a digital asset stockpile. Only Bitcoin (BTC) was designated as a potential addition to the reserve, provided it is acquired in a budget-neutral manner. Other digital assets in the stockpile, which are set to undergo an audit, may be liquidated to purchase more BTC. A potential strategy to acquire more BTC for the SBR may include using the country’s vast energy resources to obtain more BTC directly via mining.

The current reserve consists of coins obtained through law enforcement actions and civil asset forfeiture. Of the nearly 200,000 BTC currently held in the SBR, almost half originates from a 2015 exchange hack and is slated for return to its original owner, Bitfinex.

Arguments for any country to establish a Strategic Bitcoin Reserve (SBR) include hedging against fiat devaluation, diversifying reserves, enhancing sovereignty and financial independence, providing insurance against geopolitical uncertainty, and capitalizing on Bitcoin's growth potential. Conversely, arguments against an SBR primarily cite Bitcoin’s volatility and the lack of historical precedent for long-term stability. Unlike gold, BTC is easier and cheaper to custody, offers greater portability, and is resistant to seizure. Advances in Multi-Party Computation (MPC) custody leverage multi-signature technology, ensuring that a transaction is authorized only when the required signature threshold is met.

‍

Download Weekly Commentary

This site is for informational purposes only.
‍
This information within it is not intended as an offer to sell, or the solicitation of an offer to buy any securities. Such offerings may only be made by prospectus and offering documents. Carefully consider the risk factors, investment objectives, fees, expenses, and other information associated with before making an investment decision. All investments are speculative, may be illiquid and involve a high degree of risk, uncertainty, and there is risk of the complete loss of the investment. There is no guarantee that any specific outcome will be achieved. We do not offer tax, financial, accounting or legal advice. The summary set forth on this website does not purport to be complete, and is qualified in its entirety by reference to the definitive offering documents.

The materials on this website or any third-party websites accessed herein are not associated with and have not been reviewed or approved by: (i) Canary Capital Group LLC or the products sponsored by Canary Capital Group LLC; or (ii) the marketing agent of Canary Capital Group LLC’s products. Each of the above hereby disclaim any and all information, products, or services described on this website or any third-party website accessed herein.

‍This material is not intended to be relied upon as a forecast, research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of positing, and are subject to change without notice. The information and opinions are derived from proprietary and non-proprietary sources deemed to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. This material may contain ’forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

This material is published in good faith but no advice, representation or warranty, express or implied, is made by us or by any person as to its adequacy, accuracy, completeness, reasonableness or that it is fit for your particular purpose, and it should not be relied on as such. This material does not purport to be complete and is subject to change. You acknowledge that certain information contained in this website supplied by third parties may be incorrect or incomplete, and such information is provided on an "AS IS" basis. We reserve the right to change, modify, add, or delete, any content and the terms of use of this website without notice.

No information on this website constitutes business, financial, investment, trading, tax, legal, regulatory, accounting or any other advice. If you are unsure about the meaning of any information provided, please consult your financial or other professional adviser.

Investment involves risks. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. Any strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.

This website has not been, and will not be submitted to become, approved/verified by, or registered with, any relevant government authorities under the local laws. This website is not intended for and should not be accessed by persons located or resident in any jurisdiction where (by reason of that person's nationality, domicile, residence or otherwise) the publication or availability of this website is prohibited or contrary to local law or regulation or would subject us to any registration or licensing requirements in such jurisdiction.