Jack Mallers, the founder and CEO of Strike, sparked a new discussion regarding the undisclosed Bitcoin reserves held by the U.S. government during a recent post on social media. He contended that the administration is reluctant to reveal its Bitcoin holdings, suggesting that the amount is insufficient to position the U.S. as a leader in the digital asset market. "The U.S. won’t disclose their BTC holdings. Why? Because they realized they don’t own enough,” Mallers stated, emphasizing that the competition for a Strategic Bitcoin Reserve (SBR) is ongoing and expected to intensify.
In a video accompanying his post, Mallers elaborated on his concerns. He commended the government's decision to establish a Strategic Bitcoin Reserve in March but criticized the lack of transparency regarding the actual quantity of Bitcoin owned by the government. “The U.S. government has kind of let us down in not providing a full audit of its Bitcoin holdings. Clearly, that information is sensitive, or else they would disclose it. I think that the U.S. government is ashamed of its Bitcoin position,” he remarked.
President Donald Trump's Executive Order 14233, issued on March 6, formally created the Strategic Bitcoin Reserve as part of a wider Digital Asset Stockpile initiative, recognizing Bitcoin as a "unique store of value in the global financial system." However, when the administration released its digital assets strategy in July, it made only a brief mention of the SBR without providing any specific figures. Robert “Bo” Hines, executive director of the President’s Council of Advisers on Digital Assets, declined to discuss the details, stating, “I can’t discuss that right now … There are several reasons we’re not disclosing that at this time.” Despite this, Hines expressed a strong desire for the U.S. to acquire as much Bitcoin as possible, labeling it as "digital gold."
For years, analysts estimated that the U.S. government held over 200,000 BTC due to assets seized from operations like Silk Road and the Bitfinex hack. However, a Freedom of Information Act response in July revealed that the U.S. Marshals Service currently holds only 28,988 BTC, valued at approximately $3.3 billion, raising questions about the potential liquidation of a significant portion of these assets by previous administrations. Additional on-chain data has indicated that federal wallets transferred 30,175 BTC to Coinbase Prime in April 2024, with further transactions totaling $1.9 billion occurring in December 2024.
Mallers commented on these developments, suggesting that the Democratic administration may have sold off a considerable amount of Bitcoin and is hesitant to disclose this until they can rebuild their position. He described the delay in auditing as a "branding problem" for a nation that aims to establish itself as a leader in Bitcoin.
Currently, Bitcoin is trading above $114,000, having peaked at $123,000 last week, and has seen over 100 percent growth year-on-year. The supply of Bitcoin is already limited, with approximately 92 percent of all coins mined and many held in dormant or long-term wallets. Should the Treasury ramp up its SBR purchases, as Mallers anticipates, this could further tighten supply and increase market pressure.
Mallers believes that the political challenges surrounding the U.S. government's Bitcoin holdings could ultimately have a positive impact on prices. “If the U.S. wants to plant its flag as the crypto capital, it has no choice but to accumulate. That’s the bullish takeaway. We’re talking about a buyer with the deepest pockets on Earth,” he stated. However, it remains uncertain whether Congress will support these acquisitions. Senator Cynthia Lummis has reintroduced a bill aimed at directing the Treasury to acquire up to one million BTC over five years, but appropriations committees have yet to schedule any hearings. As of the latest update, Bitcoin is trading at $114,572.
