Miners Benefit Most From US Bitcoin Strategic Reserve | Opinion

Disclosure: The views and opinions expressed here are those of the author alone and do not reflect the views of the crypto.news editorial board.

On March 6, Donald Trump signed an executive order creating the Bitcoin Strategic Reserve, part of his plan to transform the United States into the “crypto capital of the world” that he announced months ago. The “digital Fort Knox” concept was finally about to become a reality.

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However, the final version missed an important element that mattered most to the market: the cryptocurrency included in the reserve turned out to be confiscated assets from the government's criminal and civil cases. While this is not the worst-case scenario (for example, German authorities immediately sell the confiscated cryptocurrency), it did not match investors' expectations for open market purchases. The expected demand factor is now on hold.

State reserves follow suit

However, the establishment of a federal crypto reserve has set an important precedent for others. States like Texas have begun exploring options for creating their own Bitcoin (BTC) reserves, and are now in the final stages. The Texas Senate passed so-called SB-21 immediately after the president’s announcement, and Governor Greg Abbott must sign the bill into law immediately. Meanwhile, Florida and New Hampshire are implementing legislative mechanisms to allow public funds to be invested in Bitcoin. While Florida’s bill is still pending, the New Hampshire Senate successfully passed a resolution on March 13.

As for the name? Shouldn't state reserves follow the example of the federal government, transferring seized digital assets from criminal and civil litigation to a special mechanism created by the state?

Reserves need more – and much more

There is no announcement yet on what the primary source of bitcoin will be for state-level reserves like Texas. Interestingly, the White House fact sheet included a caveat about developing “budget-neutral strategies for acquiring additional bitcoin.” Given the rapidly changing regulatory environment and practices, the creation of the SEC’s dedicated crypto task force, and the general loosening of the court system around digital assets, civil litigation is expected to decrease. Stronger cybersecurity practices, especially after the recent Bybit heist, will also lead to fewer criminal arrests. Even if the confiscated cryptocurrency was a simple start, its volumes will decrease in the near future.

Will a one-time reclassification of the seized assets be enough to satisfy federal and state requirements for a perpetual store of value? The U.S. government currently reportedly holds approximately 200,000 BTC — about $16.5 billion in monetary value. This amount seems significant, and even exceeds the current federal gold reserves. However, a quick comparison with the 2025 U.S. federal budget paints a different picture: The “digital asset reserve” represents only 1.03% of annual government spending. And that doesn’t include state-level spending. Is this really a strategic reserve?

Reclassifying the confiscated digital assets was the most logical place to start. But it is highly unlikely that this will be enough to make the US the “crypto capital of the world,” as President Trump has claimed. New Bitcoin purchases must be made at all levels of government.

But how can we protect open market transactions from breaching AML, FATF and other regulatory requirements? How can we ensure that all digital asset purchases are transparent, secure and compliant? How can we ensure that the origin of every bitcoin that enters the strategic reserve can be traced?

The Solution: Local Mining in the US

The US mining industry accounts for over 40% of the global Bitcoin network hashrate. Even with the increasing difficulty of mining, this is more than enough to support all future government acquisitions. The key is that the bitcoins mined will be guaranteed to be clean and compliant, given future regulatory improvements. Supporting local, compliant, easily traceable, and taxable businesses is a win-win for all parties, and tax revenues can be used to fund open market operations while remaining in line with the White House’s “budget-neutral strategies.”

States with a robust and stable energy infrastructure and abundant electricity represent the best opportunities. For example, a report by the Perryman Group estimates that local mining development in Texas could create 12,200 new jobs and generate an estimated $1.7 billion in gross domestic product. Extrapolated to the federal level, the projected creation of 31,000 jobs and an additional $4.1 billion in gross domestic product annually is projected. These numbers are too significant to ignore and could be even higher if U.S. regulators create a transparent legal framework for mining and implement energy agreements and tax incentives to further incentivize mining at both the local and federal levels.

From Business to Strategic Base Layer

Creation of the Bitcoin Strategic Reserve in

Source: cryptonews.net