To investors,

The US government established the Strategic Bitcoin Reserve recently and many in the crypto community were upset because no new purchases of bitcoin were announced.

If America finds it valuable to hold the bitcoin we already have in our possession, we should also find it valuable to buy more. Anything worth doing is worth overdoing.

Thankfully, the President’s Executive Order was well written and included an important sentence granting the Treasury and Commerce the opportunity to acquire more bitcoin in a budget neutral way. The sentence specifically reads “the Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers.”

Most people realize this is significant yet they don’t understand what the government is going to do next.

Well, we just got our answer yesterday. Bo Hines, the Executive Director of Digital Assets, said the US government wanted “as much as we can get” in reference to how much bitcoin would acquired over time.

That is a big statement coming from someone focused on acquiring more bitcoin for the United States. This brings us to the most important question — how can the US acquire more bitcoin in a budget neutral way?

VanEck’s Matthew Sigel shared 6 ideas on how this could happen. Coinpedia did a good job summarizing the ideas here:

1. Revaluing Gold to Unlock Funds

The U.S. holds vast gold reserves, but they are valued at a much lower official price than their current market worth. VanEck suggests that Congress could update this valuation, instantly increasing the paper value of these reserves. The extra capital generated could then be used to buy Bitcoin—without printing new money or raising taxes.

2. Issuing Bitcoin-Backed Bonds

Another option is for the government to create and sell “Bitcoin-backed bonds.” Investors would buy these bonds, and a portion of the money raised would go toward purchasing BTC. When the bonds mature, the government could repay investors either in Bitcoin or U.S. dollars, offering a flexible investment opportunity.

3. Using Federal Reserve Surplus

Before 2015, the Federal Reserve was allowed to keep a larger surplus of funds. VanEck suggests bringing back this policy so that the Fed can build up extra reserves and use them to buy Bitcoin. This would provide a direct way for the government to acquire BTC without needing new congressional spending approvals.

4. Adding Bitcoin to IMF’s Special Drawing Rights

Special Drawing Rights (SDRs) are international reserve assets issued by the International Monetary Fund (IMF). VanEck proposes convincing the IMF to include Bitcoin in SDRs, making it a recognized global reserve asset. If approved, this would further cement Bitcoin’s role in international finance.

5. Selling Surplus Cheese for Bitcoin

The U.S. government holds large stockpiles of surplus cheese. VanEck suggests selling off these reserves and using the proceeds to buy Bitcoin. Since this involves selling existing assets rather than increasing spending, it wouldn’t impact the federal budget deficit. At the same time, it would help the government manage its excess inventory more efficiently.

6. Using the Treasury’s Exchange Stabilization Fund

The Exchange Stabilization Fund (ESF), controlled by the U.S. Treasury, is used to manage foreign exchange reserves and stabilize the dollar. VanEck’s final proposal is for the Treasury to use this fund to buy and hold Bitcoin. Since the ESF operates outside the normal budget process, this method would offer a more flexible approach to BTC accumulation.

No one knows exactly how the government is going to acquire more bitcoin, but it is obvious that multiple government agencies are working to get more bitcoin into the Strategic Bitcoin Reserve.

I liked Bitwise’s Hunter Horsley’s comment about Bo Hines interview yesterday: “When Bitcoin is at $200k — We will look back on March 2025 and say, how was everyone not buying. It was so obvious.”

I could not agree more. The United States of America, the greatest economy ever constructed, is openly telling you they want to acquire as much bitcoin as possible. It is incredibly obvious what happens when a nation state pours billions of dollars into a finite supply asset. Just hope you weren’t late to the party.

Hope you all have a great day. I’ll talk to you tomorrow.

- Anthony Pompliano

Founder & CEO, Professional Capital Management

Bitcoin Is Taking Over Wall Street with Jan Van Eck

Jan van Eck is the CEO at VanEck. This conversation was recorded at Bitcoin Investor Week in New York.

In this conversation we talk about the relationship between bitcoin and gold, how bitcoin will disrupt Wall Street, the impact Trump will have on financial markets, and what crypto milestones Jan is looking forward to in 2025.

Enjoy!

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