Trump Orders ‘Fort Knox’ Bitcoin Reserve and Digital Assets Stockpile

President Donald Trump has instructed his administration to establish a Bitcoin Strategic Reserve for holding seized government assets. He has also called for a crypto stockpile of various asset types, primarily from civil or criminal forfeitures. The bitcoin will be secured for long-term value, akin to a "digital Fort Knox." "The Reserve will be funded with Bitcoin seized by the federal government in criminal or civil asset forfeiture proceedings," announced David Sacks, Trump's crypto czar, on X, a social media platform. A video captures Trump signing the order, affirming, "Made the promise, right?" The directive prompts officials to explore methods to increase bitcoin in the reserve without impacting the federal budget. "The Secretaries of Treasury and Commerce are tasked with creating budget-neutral strategies to acquire additional bitcoin, ensuring no added costs to taxpayers," stated Sacks. Assets for the non-bitcoin stockpile will encompass any cryptos seized by the government. While no specific assets were mentioned, some were previously acknowledged by the president. Market Impact After the announcement, Bitcoin dropped nearly 5% to $85,000, possibly due to disappointment that the reserve comprises existing government-held tokens without new purchases. Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL) declined by 4%-8% within the hour, as the order excluded fresh government acquisitions of those tokens. The executive order was revealed before the White House's industry summit, where crypto leaders are slated to discuss policy matters with Trump's administration. The president had been expected to disclose crypto reserve details during this event. Nathan McCauley, CEO of Anchorage Digital, described the establishment of a U.S. strategic Bitcoin reserve and digital asset stockpile as a significant moment for both crypto and American global leadership. Meanwhile, Matt Hougan, CIO of Bitwise Asset Management, suggested that creating a bitcoin reserve reduces the likelihood of the government outlawing the asset and increases the chances of other nations establishing similar reserves. On the contrary, Charles Edwards, founder of Capriole Investments, criticized the initiative as underwhelming and disappointing, emphasizing the lack of a buying plan as a major drawback. **UPDATE (March 7, 2025, 24:59 UTC):** Includes industry reactions and price movements. **UPDATE (March 7, 2025, 01:39 UTC):** Features comments from Anchorage Digital CEO.