The Strategic Bitcoin Reserve

Here at Sovereign Digital, we wrote about the possibility of America creating a National Strategic Reserve of Bitcoin. Trump, followed by Lummis had announced this during a Bitcoin conference back in July 2024. At the time, it was only speculation and a possibility. Trump needed to win the election, and furthermore, he needed to put his money where his mouth was. Since that conference, Trump did indeed win the election, and a few days after the inauguration signed an executive order establishing a Strategic Bitcoin Reserve for the United States, the details of which are currently being worked on.

This was a massive moment for bitcoin and one that has remained relatively hushed throughout the mainstream media. But just because the BBC or Sky News isn’t paying particular attention to it doesn’t mean that it is not important. In fact, I would argue it makes it more important.

Sovereign Digital was established almost a year ago with the intention of bringing charities and individuals into the bitcoin space and arming them with everything they needed to understand bitcoin. We wanted to offer the opportunity of getting in Bitcoin before the Strategic Reserve happened.

But that opportunity has now passed, and we believe that 2025 will play a pivotal role in bitcoin’s history, if only because it was the year that saw the formal acceptance of bitcoin by a powerful nation. Those that have been in this space for a while probably know that nation states took bitcoin seriously before (or at least should have), but what makes 2025 different is that the intention was announced to the world. The United States signed off on its intention to hold a reserve and therefore placed the idea into the public space for all who were willing to pay attention.

It lit a firework of game theory.

Since that time, we have also seen Bitcoin hit an all time high of $109,000. We fell below and climbed back above 100k briefly before falling once more to below 80k in a wave of volatility that has come about largely in part due to Trump and his maverick approach. The tariff issue largely being one of them. But this volatility has found itself everywhere. The stock market sold off and there are major concerns around the US bond market. There was a lot of speculation that Trump’s intention was to crash the stock market in order to force the Fed to cut rates, thereby making the US debt cheaper to refinance when it came due. But instead, the stock market plummeted and the interest on US treasuries began to climb once more. If you know markets, you know the concern in that. If you don’t know markets I’ll put it as simply as I can:

If nobody is buying US bonds, the interest rate goes up. If they are still not bought after that, the Fed may be forced into buying US bonds.

But what does this mean for you? What does it mean for bitcoin? Unfortunately, we cannot see the future here at Sovereign Digital. Nor would we want to. But what we do know is that the current monetary and economic machine we have is dead or dying. We stand at a unique crossroad in which the current system is shifting over to something else. The specifics of this shift, again, we cannot be certain of. But Bitcoin will most certainly play a role. It is the most secure and successful digital ledger we have and it is reasonable to suggest that it will play a pivotal role in whatever new system replaces the one we are in the process of leaving behind.

If all of that sounds unbelievable, frightening or even ridiculous to you, I get it. I’d have said or thought the same only a few years ago. But being ignorant of the facts doesn’t make them any less true, because the truth is that the window of opportunity to get into Bitcoin is running out and there are, unfortunately, going to be many individuals, organisations and institutions that get left behind. The next decade has been described the ‘gold rush’ era of bitcoin. During this next decade, 99% of the supply of bitcoin will have been mined and therefore in circulation. It will then take us around a 100 years to mine the last 1%, with each 4 year halving cycle causing bitcoin to become scarcer and scarcer.

We raised the alarm to any that would listen about the strategic reserve, and we raise it still.

If you don’t want to be left behind, reach out to us today.

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