The U.S. government could allocate up to 88,000 BTC for its newly announced Strategic Bitcoin Reserve, according to Alex Thorn, head of research at Galaxy Research.
In a March 7 post on X, Thorn explained that while federal authorities currently hold around 198,000 BTC, approximately 112,000 BTC must be returned to Bitfinex following a previous seizure. This leaves a maximum of 88,000 BTC available for the reserve.
we think current US bitcoin balance available for re-purpose into a reserve is max 88k BTC, only 43% of current government holdings. that’s bc of the ~198k BTC now held by USG, 112k BTC will be returned to bitfinex
market will learn the difference between “seized” & “forfeited”
— Alex Thorn (@intangiblecoins) March 7, 2025
White House AI and Crypto Czar David Sacks clarified that the reserve would be funded through seized digital assets, ensuring no additional cost to taxpayers. However, Thorn’s analysis suggests that only forfeited Bitcoin, rather than all seized holdings, can be repurposed, significantly limiting the reserve’s potential size. He also highlighted that Bitcoin accounts for 97.7% of the U.S. government’s digital asset holdings—a figure that rises to 98% when including Wrapped Bitcoin (WBTC).
Trump’s decision to establish the reserve has been met with widespread support from the crypto community. Coinbase CEO Brian Armstrong called it a “historic moment for Bitcoin and crypto,” predicting that other G20 nations may follow suit.
Meanwhile, Ripple CEO Brad Garlinghouse defended XRP’s potential role as a reserve asset, praising its technology, resilience, and community support. He advocated for a diversified reserve strategy that aligns with Trump’s multi-token approach.
Beyond immediate market reactions, industry experts say the reserve has far-reaching implications for institutional and government adoption. Ryan Rasmussen, head of research at Galaxy Digital, argued that the move reduces concerns over the U.S. government selling large Bitcoin holdings, reinforcing its long-term asset status.
The end game was never “the U.S. government buys all of the world’s bitcoin.”
A U.S. Strategic Bitcoin Reserve means…
– Other countries will buy bitcoin
– Wealth managers have no excuse
– Financial institutions have no excuse
– Pensions/Endowments have no excuse
– Fear of the… https://t.co/iAoyeo3PYL— Ryan Rasmussen (@RasterlyRock) March 7, 2025
Rasmussen also suggested this policy shift could encourage nations, financial institutions, and even state governments to invest in Bitcoin. He added that with the U.S. government actively holding BTC, imposing harsh regulations or bans would be counterproductive.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
