US Government Expected to Add Bitcoin to Strategic Reserve by 2025

Alex Thorn from Galaxy Digital predicts that the US will buy Bitcoin for its Strategic Bitcoin Reserve in 2025, using funds from altcoin sales to maintain budget neutrality. This follows a supportive Executive Order that prevents the sale of existing Bitcoin while prompting Department actions on cryptocurrency management.

Alex Thorn, the head of research at Galaxy Digital, predicts that the US government will increase its Bitcoin holdings as part of a Strategic Bitcoin Reserve (SBR) plan in 2025. During a segment on Bloomberg Crypto, he indicated that alongside confiscated Bitcoin, the government would take steps to acquire BTC. A recent Executive Order has now established the SBR and dictates that the government cannot sell existing Bitcoin while requiring the Departments of Commerce and Treasury to explore budget-neutral purchasing methods for the cryptocurrency.

Thorn highlighted the growing recognition of Bitcoin as a store of value, with endorsements from officials such as Treasury Secretary Scott Bessent and members of the President’s Council of Advisers on Digital Assets. He suggests that the government is likely to follow through with Bitcoin purchases in the near future.

To achieve budget-neutral acquisition of Bitcoin, Thorn mentioned that the government could sell altcoins from the digital asset stockpile to fund Bitcoin purchases without accessing cash. Specifically, selling these altcoins through a trading pair with Bitcoin would allow for the swap without affecting the general treasury, thereby fulfilling SBR commitments without direct cash flow.