US Officials Probably Will Not Acquire Bitcoin in 2025, According to Galaxy Digital Analysis Chief

The US government is not expected to acquire Bitcoin in 2025, according to Alex Thorn, head of research at Galaxy Digital.

In a report released on December 27, Thorn anticipated that while discussions regarding a Bitcoin reserve policy may advance, the government will focus on managing its existing Bitcoin holdings rather than purchasing additional amounts.

Thorn indicated that there could be “activity within departments and agencies to explore an expanded Bitcoin reserve policy.”

US Government Holds 183K BTC

Currently, the US government possesses approximately 183,850 BTC, valued at $17.36 billion, according to the blockchain analysis platform Spot on Chain.

This Bitcoin is distributed across various known wallet addresses.

Wyoming Senator Cynthia Lummis has introduced the Bitcoin Act, which, if passed, would significantly alter the government’s approach.

The act proposes a strategy for the US Treasury to acquire 200,000 BTC annually over five years, aiming to build a reserve of 1 million Bitcoin to be held for at least 20 years.

Galaxy Digital analyst “JW” also contributed insights, suggesting that up to five Nasdaq 100 companies and five nations might incorporate Bitcoin into their balance sheets or sovereign wealth funds in the near future.

JW contended that increasing global competition could drive countries, particularly those neutral or hostile towards the US, to adopt Bitcoin mining or accumulation strategies.

21 – The U.S. government won’t buy Bitcoin in 2025, but it will create a stockpile using funds it already possesses, and there may be some movement within departments and agencies to examine an expanded Bitcoin reserve policy. –@intangiblecoins

— Galaxy Research (@glxyresearch) December 27, 2024

Japan’s Prime Minister Shigeru Ishiba recently expressed doubt, stating on December 26 that the Japanese government lacked sufficient understanding of the actions being taken by the US or other nations regarding Bitcoin reserves.

Meanwhile, former Binance CEO Changpeng Zhao speculated that smaller nations might be the first to adopt Bitcoin reserves.

Speaking at the Bitcoin MENA conference in Abu Dhabi on December 9, Zhao also suggested that China might eventually consider a strategic Bitcoin reserve, although he acknowledged that such changes would likely occur gradually.

US States Consider Adding Bitcoin To Reserves

Ohio has become the latest US state to explore the addition of Bitcoin to its treasury reserves, following the introduction of a new bill by House Republican leader Derek Merrin.

This initiative reflects recent actions by Texas and Pennsylvania to establish Bitcoin reserves.

On December 12, 2024, Texas Representative Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, which proposes that the state comptroller hold Bitcoin as a reserve asset for a minimum of five years.

Pennsylvania took a similar step in November, with Representative Mike Cabell proposing a bill to allow its treasury to allocate up to 10% of its balance sheet in Bitcoin, citing the asset’s potential to hedge against economic uncertainty.

Additionally, corporate Bitcoin holders such as MicroStrategy and Metaplanet have increased their Bitcoin holdings.

MARA Holdings (MARA) has also acquired 11,774 BTC in its latest purchase, as announced on X on December 10.

Similarly, Riot Platforms, a Bitcoin mining company, revealed plans to raise $500 million through a private bond offering to further enhance its Bitcoin reserves.

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