U.S. Strategic Bitcoin Reserve Gains Momentum with Bipartisan Support and International Interest

Main Points:

• Bipartisan legislative efforts seek to build a national Bitcoin reserve under the U.S. Treasury.
• High-ranking military officers have publicly endorsed the concept, framing it as a tool for “geopolitical advantage.”
• President Trump issued an executive order to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile.
• Several states—including Texas, New Hampshire, and Arizona—are pursuing their own Bitcoin reserve bills.
• Sovereign wealth funds like Mubadala (UAE) and the Czech National Bank are exploring or adopting Bitcoin allocations.
• Integrating energy-intensive Proof-of-Work mining into U.S. energy policy could bolster domestic industry and strategic autonomy.

1. Introduction

In recent months, the concept of a U.S. Strategic Bitcoin Reserve has leapt from the fringes of crypto advocacy into the heart of national policy debates. Spearheaded by Senator Cynthia Lummis (R-WY) and backed by both legislative peers and executive action, the proposal envisions the Treasury Department holding Bitcoin not merely as a speculative asset but as “digital gold” to strengthen America’s financial resilience. Enthusiasm has spanned party lines, with former President Trump signing an executive order to formalize the initiative, and even military generals weighing in on the benefits of building such a reserve. State legislatures have joined the fray, passing or considering bills to set aside public funds for Bitcoin, while abroad, institutional and sovereign actors—from Abu Dhabi’s Mubadala to the Czech National Bank—signal growing global demand for allocating part of national treasuries to Bitcoin.

This article offers a comprehensive overview of the strategic reserve proposal, examines its bipartisan momentum and military endorsements, details related federal and state actions, and contextualizes emerging sovereign interest. We also explore how Proof-of-Work mining dovetails with U.S. energy and industrial policy, and assess the broader implications for America’s leadership in finance and blockchain innovation.

2. The Legislative Landscape

Senator Cynthia Lummis reintroduced the Bipartisan Investment in Treasury and Consumer Holdings of Interest-Bearing Network Bitcoin (BITCOIN) Act, which would authorize the Treasury to acquire up to 1 million BTC over five years, leveraging seized digital assets and appropriated funds. Lummis frames the reserve as an extension of U.S. energy policy and industrial capacity, arguing that Bitcoin’s decentralized, proof-of-work consensus mechanism aligns with American strengths in energy production and technological innovation.

On the Hill, the BITCOIN Act has garnered co-sponsors from both sides of the aisle, including Wyoming Senator John Barrasso (R) and Massachusetts Senator Elizabeth Warren (D), illustrating an unusual bipartisan recognition of Bitcoin’s potential to diversify national reserves and hedge against fiat volatility in an era of rising geopolitical tension. Floor debates have centered on the asset’s transparency, resistance to censorship, and the argument that Bitcoin, akin to gold, can serve as a bulwark against inflationary monetary policies.

Critics in Congress express concern over market manipulation risk and the challenge of valuing a highly volatile asset. Nevertheless, committee hearings have featured testimony from veteran investment managers and former Treasury officials who underscore Bitcoin’s low correlation with traditional asset classes, positioning it as a strategic complement to existing reserve holdings.

3. Military Backing and Geostrategic Considerations

Senator Lummis revealed that multiple four-star generals from branches of the U.S. military have publicly endorsed a Strategic Bitcoin Reserve, describing it as a force multiplier for American “geopolitical advantage”. Senior officers argue that holding Bitcoin strengthens economic deterrence by ensuring U.S. access to a censorship-resistant asset pool, reducing vulnerability to foreign sanctions or supply-chain disruptions.

This military backing correlates with broader DoD initiatives to explore blockchain for secure communications, logistics, and supply-chain tracking. Bitcoin’s decentralized ledger offers assurances against tampering and centralized points of failure—attributes prized in defense circles. Indeed, breakout sessions at the recent Pentagon Tech Expo included panels on integrating Bitcoin and blockchain into defense logistics, underscoring the armed services’ appetite for digital-asset experimentation.

Geopolitically, proponents highlight that major adversaries—namely China and Russia—have shown growing interest in digital assets, both at the state and private levels. By establishing a reserve, the U.S. sends a clear signal of technological and financial leadership, potentially preempting efforts by rival powers to undermine dollar hegemony or build their own digital-asset alliances.

4. Executive Order and Federal Policy Framework

On March 15, 2025, President Trump signed an Executive Order establishing a Strategic Bitcoin Reserve and United States Digital Asset Stockpile, instructing the Secretaries of Treasury and Commerce to draft guidelines for acquiring additional government-held Bitcoin and other digital assets. The Order mandates that Treasury consolidate BTC obtained through criminal and civil forfeiture, and evaluate the legal pathways for agencies to transfer any existing Bitcoin holdings into the reserve.

The White House Fact Sheet outlines that the Reserve should:

1. Treat Bitcoin as a reserve asset, akin to foreign currency holdings or gold.
2. Maintain cold-storage protocols to safeguard against cyber-risk.
3. Issue biennial reports to Congress detailing reserve valuations, risk assessments, and policy recommendations.

By embedding Bitcoin in federal asset management, the Order aims to institutionalize digital-asset stewardship and set a precedent for other central banks. It also paves the way for the Treasury to develop reserve guidelines that prioritize transparency, auditability, and interoperability with existing financial infrastructure.

5. State-Level Initiatives and Divergent Paths

While federal efforts solidify, individual states have taken the lead in experimenting with Bitcoin reserve models:

• Texas: On May 22, 2025, the Texas House passed SB 21 by a 101-42 vote, authorizing a special fund outside the state treasury to accumulate Bitcoin over five years—positioning the crypto asset as a strategic investment to diversify state holdings. If Governor Abbott signs the bill, cold storage protocols and biennial reports will mirror federal guidelines, making Texas the first large-scale state to codify a Bitcoin reserve.
• New Hampshire: Signed into law on May 6, 2025, a bill empowers the state treasury to allocate up to 5% of its rainy-day fund into digital-asset investments, including Bitcoin and Ether, with stringent risk parameters. The state treasurer must report on performance and compliance annually.
• Arizona: A concurrent bill awaits a floor vote in the Senate, proposing a reserve funded by unclaimed property seizures, with an initial cap of 10,000 BTC. Proponents argue it offers a novel revenue source without raising taxes.

Conversely, some states have paused or withdrawn reserve proposals. Florida’s twin bills, which would have redirected up to 10% of certain public funds into Bitcoin, were pulled on May 6, 2025, amid concerns over budgetary uncertainty and market volatility. These mixed outcomes underscore the experimental nature of subnational digital-asset policy and the need for tailored governance frameworks.

6. Global Sovereign Interest and Institutional Adoption

The push for a national reserve resonates internationally as sovereign actors explore Bitcoin’s portfolio potential:

• Mubadala Investment Company (UAE): Abu Dhabi’s government fund disclosed a $436 million allocation to spot Bitcoin ETFs in Q4 2024, marking one of the largest sovereign commitments to digital assets to date. This move signals confidence in Bitcoin’s long-term store-of-value proposition and sets a benchmark for other wealth funds.
• Czech National Bank: In January 2025, Governor Aleš Michl secured board approval to study Bitcoin allocations up to 5% of its €140 billion reserves. A final decision could position the CNB as the first European central bank to formally embrace crypto within its balance sheet.
• Norway and China: CoinShares reports that several Asian and Middle Eastern funds are quietly ramping up Bitcoin positions, driven by diversification mandates and a desire to hedge against currency depreciation.

These developments create a feedback loop: as more sovereign entities adopt Bitcoin, political pressure mounts on U.S. policymakers to move decisively. Lummis points to these international examples as proof that the U.S. cannot cede leadership in digital-asset governance and monetary innovation.

7. Integrating Proof-of-Work Mining with Energy Policy

A unique aspect of the U.S. reserve proposal is the emphasis on domestic Proof-of-Work (PoW) mining. Proponents argue that:

1. Energy-intensive mining can absorb surplus power from renewables, stabilizing grids and supporting rural development.
2. PoW operations create jobs in energy-rich states like Texas, Wyoming, and Kentucky—extending the economic benefits of America’s energy boom.
3. Close coordination between federal agencies and mining firms can optimize power usage, turning Bitcoin mining into a strategic adjunct to energy policy rather than a mere consumer of electricity.

Senator Lummis describes PoW mining and the Strategic Bitcoin Reserve as “two sides of the same energy innovation coin,” asserting that combining onshore mining with reserve accumulation cements the U.S. role as a leader in both blockchain security and sustainable energy deployment. Pilot programs in Texas already test co-locating wind farms with mining rigs to absorb excess generation, demonstrating proof of concept for grid-stabilizing crypto operations.

8. Implications for U.S. Financial Leadership

Establishing a Strategic Bitcoin Reserve carries far-reaching implications:

• Dollar hegemony: By treating Bitcoin as a parallel reserve asset, the U.S. can hedge against erosion of dollar dominance, especially if rival powers pursue their own digital-asset strategies.
• Regulatory clarity: A formal reserve guideline forces agencies to define custody, audit, and valuation standards for digital assets—laying groundwork for comprehensive crypto regulation.
• Investment diversification: Incorporating Bitcoin into public treasuries can buffer against traditional market downturns and hyperinflationary risks in fiat.
• Innovation catalyst: Federal endorsement elevates blockchain R&D, spurring private-sector investment in Layer-2 protocols, institutional custody solutions, and fintech applications.

Critics warn of Bitcoin’s price swings, environmental footprint, and governance challenges. Yet, as global adoption accelerates, the debate has shifted from “if” to “how” the U.S. should integrate digital assets into its financial architecture. The Reserve proposal—backed by lawmakers, military leaders, and executive action—may chart a course for a new era of hybrid monetary policy.

Conclusion

The U.S. Strategic Bitcoin Reserve initiative represents a convergence of bipartisan legislation, military endorsement, state experimentation, and international adoption. From Senator Lummis’s BITCOIN Act to President Trump’s executive order, and from Texas’s SB 21 to sovereign moves by Mubadala and the Czech National Bank, momentum is unmistakable. By harnessing Bitcoin as “digital gold,” integrating PoW mining with energy policy, and codifying custody standards, the United States stands poised to reinforce its financial resilience and technological leadership. As global peers deepen their engagement with digital assets, the path ahead demands careful balancing of innovation and risk. Ultimately, a well-structured reserve could serve not only as a hedge against macroeconomic uncertainty but also as a testament to America’s enduring capacity for monetary and industrial ingenuity.