US Government Could Be Preparing to Make a Major Bitcoin Move, Potentially Investing Up to $100 Billion

Rumors have been swirling about a massive U.S. government move in the works—a $100 billion investment in Bitcoin. While it may sound far-fetched, Sebastian Bea, President of Coinbase Asset Management, explained in a recent interview how a small accounting change could unlock enough value for the government to invest in Bitcoin without increasing the national debt or resorting to printing money.

Currently, U.S. gold reserves are still listed at the 1973 price of $42.22 per ounce, even though gold is now trading at over $3,300 per ounce. This discrepancy leaves a nearly $900 billion gap between the gold’s book value and its real market value. Bea suggests that updating 31 U.S.C. § 5117 to reflect the true value of gold would be the key to unlocking this capital.

“The administration could quickly mobilize this capital by amending 31 U.S.C. § 5117 to allow the U.S. Treasury to issue higher-value gold certificates, effectively establishing a sovereign wealth fund that could be used to purchase Bitcoin,” Bea explained.

This strategy aligns with Senator Cynthia Lummis’s proposed BITCOIN Act, which calls for the U.S. Treasury to purchase one million Bitcoin over five years—without adding to the federal deficit.

The implications of such a move are huge. Buying 5.5% of Bitcoin’s market cap would send shockwaves through the global market, potentially prompting other governments to follow suit as they strive to remain competitive in a rapidly changing and increasingly digital world.

While Bea didn't set a specific timeline, he suggested that the U.S. could make this move as early as 2025 if the political climate is favorable.

As Bitcoin continues to rise in price—it’s currently trading at around $94,000—a U.S. investment of this magnitude could propel the cryptocurrency to even greater heights, setting the stage for a new era of Bitcoin adoption by nation-states.

The path to a U.S. Bitcoin reserve might be shorter than we think—especially if Congress decides to make a small but powerful legislative change. The potential impact? A massive new chapter for Bitcoin and its place in the global economy.

The U.S. government could invest in Bitcoin by revaluing its gold reserves, which would unlock significant capital. This method avoids the need to print new money or increase debt.

Similar to how central banks increased gold purchases last year, other governments may follow the U.S. lead in investing in Bitcoin to stay competitive in a digital-first economy.

A Strategic Bitcoin Reserve refers to a large accumulation of Bitcoin by a government or institution, treating it as a reserve asset akin to gold or foreign currencies. This could be used to stabilize the economy or strengthen national financial security.