TLDR

Treasury Secretary Scott Bessent clarified the US is exploring “budget-neutral” ways to acquire more Bitcoin
Earlier statements suggesting no new Bitcoin purchases were contradicted by a later tweet
The Strategic Bitcoin Reserve currently holds $15-20 billion in Bitcoin
Bitcoin price fell from a record high of $124,000 to around $118,000 amid the confusion
The government plans to stop selling its existing Bitcoin holdings

The United States government may still be adding to its Bitcoin holdings, according to recent statements from Treasury Secretary Scott Bessent that appear to walk back earlier comments which had sent the cryptocurrency’s price tumbling.

In what seemed to be contradictory messages delivered on the same day, Bessent first stated the Strategic Bitcoin Reserve would only consist of already-held Bitcoin with no plans for new purchases. Hours later, he changed course via social media.

“Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world,’” Bessent wrote on X (formerly Twitter) Thursday afternoon.

Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.

In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…

— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025

The clarification came after his earlier comments to FOX Business were widely interpreted as meaning the Treasury had no plans to buy more Bitcoin. “We’ve also started to get into the 21st century, a Bitcoin reserve. We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up,” he had stated.

This initial statement triggered a market reaction, wiping nearly $55 billion from Bitcoin’s market capitalization within 40 minutes. The price dropped from $121,073 to $118,886 according to CoinGecko data.

Current Holdings and Future Plans

The Strategic Bitcoin Reserve, established by President Donald Trump’s executive order in March, currently holds between $15 billion and $20 billion worth of Bitcoin according to Bessent. This aligns with BitBo’s Bitcoin Treasuries dashboard, which reports US holdings of 198,012 Bitcoin valued at approximately $23.5 billion.

Bessent confirmed that forfeited Bitcoin from government criminal cases would form the “foundation” of the reserve. He also stated clearly that the government plans to halt sales of its existing holdings, saying simply: “We’re going to stop selling.”

The concept of “budget-neutral” acquisition strategies has been discussed since Trump’s March 6 executive order, which established both a Strategic Bitcoin Reserve and a Digital Asset Stockpile. The order specified that additional purchases should use strategies that “do not impose incremental costs on United States taxpayers.”

Criticism from the Crypto Community

Despite Bessent’s clarification, some in the Bitcoin community expressed frustration at what they perceive as delays in implementing the strategy.

“Are you seriously still ‘exploring budget-neutral pathways’? At some point, exploration without execution starts to look like avoidance,” wrote Eli Nagar, CEO of Bitcoin mining firm Braiins, on X.

Others pointed out that the Treasury requires congressional approval to purchase Bitcoin in a budget-neutral manner. US Senator Cynthia Lummis highlighted this fact, calling for Congress to examine the BITCOIN Act she introduced in March.

Among the budget-neutral strategies that have been suggested are the reevaluation of Treasury gold certificates and using tariff revenue, though no official plan has been announced.

Bitcoin continued trading at around $118,000 late Thursday, down from the new record high of $124,000 it had reached in overnight trading before Bessent’s initial comments. The decline was partly attributed to a stronger than expected Producer Price Index report, which raised questions about whether inflation is slowing enough for Federal Reserve interest rate cuts in September.

The leadership of the White House’s Council of Advisors on Digital Assets, which oversees the Strategic Bitcoin Reserve among other responsibilities, recently changed with Bo Hines exiting his position earlier this month.

The post US Treasury Plans to Explore Budget-Neutral Bitcoin Purchases for Strategic Reserve appeared first on Blockonomi.

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Filed under: Bitcoin - @ August 15, 2025 8:17 am