U.S. Government May Be Quietly Preparing to Stockpile Bitcoin, Analyst Suggests

Alex Thorn, Head of Corporate Research at Galaxy Digital, has suggested that the U.S. government may be preparing to add Bitcoin to a new kind of strategic reserve

Alex Thorn, Head of Corporate Research at Galaxy Digital, has suggested that the U.S. government may be preparing to add Bitcoin to a new kind of strategic reserve, shifting its approach to digital assets.

Speaking in an interview, Thorn alluded to a March executive order on digital asset management that laid the groundwork for this possibility. The directive prohibits the federal government from selling any Bitcoin it holds and instructs the Commerce and Treasury Departments to find creative ways to acquire more—without tapping into taxpayer funds.

While Thorn previously stated that he expected the government to simply hold onto existing Bitcoin, he now sees the prospect of direct purchases as far more realistic.

The executive order takes a firm stance against altcoins, barring any official purchases while leaving their management to individual agencies.

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The prospect of U.S. government agencies liquidating seized altcoins to swap for Bitcoin was also raised by Thorn, who noted that one potential strategy could involve liquidating altcoins already in federal possession—perhaps acquired through seizures or enforcement actions—and swapping them for Bitcoin, possibly without needing to convert them to fiat currency.

This speculation arises as federal agencies were given 30 days to report on existing Bitcoin reserves, though the findings have yet to be made public. Thorn suspects that the report has already reached the White House.

Further fueling the speculation, Treasury Secretary Carla Besson recently referred to Bitcoin as a “store of value,” signaling a possible ideological shift at the top. Prominent voices like Bo Hines and David Sacks have also pushed the narrative that Bitcoin should be treated as a strategic asset in the national interest.

How will the U.S. government fund Bitcoin accumulation?

When asked about the logistical challenges of funding Bitcoin accumulation without affecting the federal budget, Thorn admitted, "It's a valid point."

However, he believes the answer might lie in quietly held altcoin reserves that have gone largely unnoticed, even by lawmakers—assets that could be sold to finance Bitcoin acquisitions.

"I think that's where we get into interesting speculation. What are some of the assets that we're not necessarily thinking about that the government might hold? And could they be used to fund this Bitcoin accumulation in a way that would fly under the radar?"

Overall, Alex Thorn highlighted the potential implications of the U.S. government pivoting towards Bitcoin accumulation, considering the macroeconomic impact and implications for the cryptocurrency market.