Kanazawa, a blockchain analyst, suggested a few ways for the US government to increase Bitcoin holdings while maintaining budget neutrality. The suggestions follow Trump’s executive order to establish a Strategic Bitcoin Reserve without new purchases.
Kanazawa, an analyst, suggested some measures the United States government could implement to ensure it increased its Bitcoin holdings while maintaining budget neutrality. Donald Trump signed an executive order on Thursday to establish a crypto reserve without expanding its holdings.
Kanazawa suggests fiscal-neutral strategies for the US government to increase its BTC holdings
Kanazawa pointed out that the United States government could maintain its budget neutrality while increasing its Bitcoin holdings. The suggestions aligned with Trump’s recently signed executive order establishing a Bitcoin reserve. The executive order highlighted the United States would retain its estimated 200,000 BTC already seized in criminal and civil proceedings.
授权财政部预算中性增持比特币，卖黄金的可能性又高了一点，目前看来只有这一条路是靠谱的 pic.twitter.com/bWVfxgzvPi
— Jinze 金泽 (@kanazawa0x0) March 7, 2025
The analyst highlighted that BTC strategies could not increase net government expenditures as Trump remained vocal about reducing government spending. Kanazawa recognized that the possibility of selling gold to increase BTC holdings was now on the table. He pointed out that gold and Bitcoin recorded prices after Trump signed the executive order.
The analyst noted the problem with continuing judicial confiscation was that half of the confiscated coins had to be refunded to Bitfinex. He added that only 100,000 coins were in actual reserves.
Kanazawa added that most coins were also confiscated in the early days when BTC was almost worthless. He pointed out that the United States government could take a long time before it could confiscate the same amount of coins in the future.
The analyst suggested redistributing assets was the most lucrative way to increase the government’s Bitcoin holdings. He explained the government could utilize the income generated from gold reserves or Fed deposits to purchase more BTC.
Kanazawa points out that selling gold to acquire BTC seems more reliable
Kanazawa observed that the fed’s earnings were turned over to the United States Treasury to become generational revenue and were challenging to utilize. He emphasized that selling gold to acquire more BTC seemed the only option to increase BTC holdings without increasing government spending.
The analyst suggested the third method the US government could use to increase its BTC holdings was reinvesting tariffs and other existing revenues. He explained that part of the tariffs or non-fiscal revenues should be allocated to BTC purchases so that the government could maintain budgetary neutrality. The analyst pointed out that the Secretary of Commerce had clarified that tariff money would not be used to create the national reserve plan, disqualifying the idea.
Kanazawa also suggested that the United States government implement idle resource mining. He explained that the government could use existing underutilized computing resources or energy, such as federal data centers, to mine more Bitcoin. The analyst added that this would increase revenue in the country.
He pointed out that nations such as Bhutan accumulated Bitcoin through state-supported mining. The analyst, however, added that the idea could not provide incremental funds since not a lot could be mined. He said that, after all, 95% of the cryptocurrency had been mined.
Given the analyzed factors, Kanazawa emphasized that selling gold to increase Bitcoin holdings seemed the most reliable of all measures.
David Sacks commented the United States would not sell any Bitcoin deposited into the Reserve. He added that the cryptocurrencies would be kept as a store for value within the United States treasury.
Investors anticipated the establishment of a US Bitcoin reserve would lead to the government directly acquiring more BTC, increasing the demand for digital assets. The newly signed executive order highlighted that no taxpayer money would be used to obtain more coins.
Establishing a BTC reserve was one of Trump’s pledges during his campaign trail last year. The president is also pushing for crypto-friendly legislation in Congress to boost innovation within the industry.
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