Trump Considers $200 Billion Fund for Bitcoin Acquisition

U.S. President-elect Donald Trump is contemplating an executive order to establish a Strategic Bitcoin Reserve (SBR), according to Dennis Porter, CEO of Satoshi Action Fund.

I can confirm that Trump is exploring an Executive Order creating a ‘Strategic Bitcoin Reserve.’ The Treasury, through the Exchange Stabilization Fund, has the authority to stabilize the dollar by buying currencies.

Trump will use this fund to buy Bitcoin.

— Dennis Porter (@Dennis_Porter_) December 15, 2024

According to Porter, the cryptocurrency purchase is planned to be financed through the Treasury’s Exchange Stabilization Fund (ESF), which typically uses its resources to support the dollar without affecting the overall money supply.

As per the October report, the ESF’s assets exceeded $211 billion, with $171.3 billion in Special Drawing Rights from the IMF and related interest receivables. The fund’s net position barely exceeds $40 billion.

Porter added that if Trump delays the initiative, Satoshi Action Fund will launch a “wave of SBR” at the state level. The nonprofit organization he leads promotes mining and cryptocurrency-friendly regulations, working with lawmakers and regulators.

Satoshi Action Fund assisted in drafting a bill submitted to the Texas House of Representatives in December to create a bitcoin reserve. Similar initiatives are being advanced in Pennsylvania, Florida, and several other states.

According to Porter, Trump’s team began preparing the SBR order in November to preempt states in establishing a bitcoin reserve at the federal level. The plan has garnered support in the Senate.

I’ve heard that the Trump team is considering an Executive Order for a National ‘Strategic Bitcoin Reserve’ in order to beat any state from passing it into law first. I can confirm that U.S. Senate offices are backing this plan up.

Game on President Trump. The race is on. ??

— Dennis Porter (@Dennis_Porter_) November 18, 2024

On December 12, Trump confirmed his intention to create the SBR in an interview with Jim Cramer for CNBC. 

Jack Mallers, founder and CEO of Strike, stated that the president will sign the corresponding order immediately after the inauguration on January 20.

In November, Senator Cynthia Lummis introduced the “Bitcoin Act of 2024” to Congress, proposing the creation of a strategic reserve of the first cryptocurrency in the country. The document suggests purchasing 1 million BTC over five years.

On December 13, during a meeting with Scott Bessent, nominated by Trump for Treasury Secretary, Lummis expressed hope that he would become “a crucial ally” in advancing the bill.  

JUST IN: ?? US Senator Cynthia Lummis meets with the future Treasury Secretary and says he’ll be “a crucial ally in passing my Strategic Bitcoin Reserve” bill. pic.twitter.com/pWtnzFILXk

— Bitcoin Magazine (@BitcoinMagazine) December 13, 2024

Will Other Countries Follow the U.S. Example?

In Germany, Bundestag member Joana Cotar stated on Robin Seyr’s podcast that all governments will eventually have to adopt bitcoin.

For my YouTube Crowd: https://t.co/Z2XerSktyE

— Robin Seyr (@RobinSeyr) December 14, 2024

She believes that approximately 50,000 BTC, which the authorities sold in the summer, could have formed the basis for a strategic cryptocurrency fund in Germany. Cotar criticized this decision at the time and now calls it a “huge mistake.” 

The politician noted that the government lost about €2 billion in value, considering the recent all-time high of digital gold.

If the U.S. bitcoin reserve succeeds, similar initiatives are likely to develop in Europe. However, Cotar believes the EU political establishment is unlikely to embrace Trump’s idea due to strained relations with the U.S. president-elect.

In Russia, State Duma deputy from the “New People” faction Anton Tkachev proposed to Finance Minister Anton Siluanov the creation of a strategic reserve in the first cryptocurrency.

Previously, Anatoly Aksakov, head of the parliamentary committee on financial markets, rejected the idea of storing budget funds in bitcoin, citing the asset’s high volatility and technical features.