Pyth Network (pyth) 
“`html
On March 6, 2025, an executive order established the U.S. Strategic Bitcoin Reserve (SBR), aiming to position Bitcoin as a strategic national asset. The order prohibits the government from selling its Bitcoin holdings or acquiring more using taxpayers’ money. Since its inception, questions have arisen about how the U.S. plans to accumulate additional Bitcoin, with several strategies being discussed.
Insights from Bo Hines
In a recent interview, Bo Hines, President of the Presidential Council of Advisers for Digital Assets, shared two potential methods for increasing the U.S.’s Bitcoin reserves. These ideas have sparked interest among crypto enthusiasts and policymakers alike.
“Everything’s on the table. And like we’ve said, we want as much as we can get. So we’re going to make sure that no stone is unturned as we start fleshing out some of these processes.” – Bo Hines
Gold Certificate Revaluation
One method discussed by Hines involves revaluing gold certificates held by the U.S. Treasury. Currently, these certificates are valued at $42.2 per ounce, far below the market price of gold, which exceeds $3,000 per ounce. By issuing new certificates that reflect the fair market value of gold, the Treasury could unlock significant funds to purchase Bitcoin.
This approach, while innovative, has faced criticism. Some experts, like Craig Hemke, have labeled it an “accounting gimmick.” Hemke argues that such a revaluation could devalue the dollar while inflating gold prices. However, a weaker dollar might align with the administration’s goals of boosting exports and revitalizing domestic manufacturing. Additionally, inflation often correlates with stronger Bitcoin performance, which could further support this strategy.
Revenue from Tariffs
Another method mentioned by Hines is utilizing revenue generated from tariffs. Research suggests that a 10% universal tariff could yield $2.2 trillion over nine years, while a 20% tariff might raise $3.4 trillion during the same period. These funds could be allocated to purchasing Bitcoin for the SBR without burdening taxpayers.
Acquiring one million Bitcoins at current prices would require far less than one trillion dollars, making both the gold certificate revaluation and tariff revenue viable strategies for building the reserve.
Alternative Strategies
In addition to the methods discussed by Hines, other experts have proposed additional strategies for expanding the SBR:
- Bitcoin Bonds: The Bitcoin Policy Institute has introduced the concept of Bitcoin bonds, or “BitBonds.” These bonds would offer investors a fixed 1% annual interest paid in USD. A portion of the funds raised through BitBonds could be used to purchase Bitcoin for the reserve.
- Exchange Stabilization Fund Surplus: Selling surplus assets from the Exchange Stabilization Fund and Special Drawing Rights could provide the government with approximately $39-40 billion. This method, akin to the gold certificate revaluation, bypasses the need for congressional approval and could be implemented relatively quickly.
Accounting Challenges
Currently, the U.S. holds approximately 200,000 BTC, primarily acquired through seizures. An audit of these holdings was supposed to take place within 30 days of establishing the SBR, yet no public records confirm whether this audit occurred. Transparency in accounting remains a critical issue as the U.S. moves forward with its Bitcoin strategy.
The lack of clarity has sparked criticism, with some questioning the administration’s commitment to accountability. During a recent interview, Anthony Pompliano faced backlash for not addressing these concerns, leading to accusations of favoring the administration.
As the U.S. explores creative ways to grow its Bitcoin reserves, these strategies highlight the increasing importance of cryptocurrencies in national financial policies. Whether through gold revaluation, tariffs, or innovative financial products like Bitcoin bonds, the government is poised to integrate Bitcoin into its long-term economic strategy.
“`
