Trump’s Crypto Czar Reveals Plan to Grow US Bitcoin Holdings Using Existing Funds

Key takeaways: 

• Trump’s executive order allows U.S. agencies to purchase more Bitcoin by reallocating unused funds.
• DOJ holds $21B in Bitcoin and has slowed sales, signaling a long-term reserve strategy.
• As companies buy Bitcoin with debt, the U.S. looks to compete with smarter funding

The US could significantly grow its Bitcoin reserves by tapping unused agency funds, White House AI and crypto czar David Sacks revealed at the Bitcoin 2025 conference. Under President Trump’s March 6 executive order, federal agencies can reallocate existing budgets to buy more BTC, as long as the purchases remain budget-neutral.

Sacks explained that either the Commerce or Treasury Department must first identify unspent funds before redirecting them toward Bitcoin. The move would avoid new taxes or debt while positioning the US to compete with corporations rapidly stockpiling crypto.

Bureaucracy vs. Bitcoin: Can the US Outpace Corporate Buyers?

The US already holds 198,012 BTC ($21 billion), making it the world’s largest government Bitcoin owner, according to Bitcoin Treasuries. 

The holdings come from three major seizures, namely the 69,370 BTC from Silk Road (2020), 51,351 BTC from a 2022 bust and the 94,636 BTC recovered from hacker Ilya Lichtenstein (2022).

Though the DOJ won approval earlier this year to sell Silk Road-linked Bitcoin, no major government sales have been reported since January 2025. The hesitation suggests a strategic pivot, holding rather than dumping.

However, Sacks admits that the real hurdle is bureaucratic. Commerce Secretary Howard Lutnick or Treasury Secretary Scott Besson must approve the reallocation. Without their buy-in, agencies can’t leverage Trump’s order.

If they act, the US could leapfrog corporate players in the Bitcoin arms race. Until then, private entities continue to set the pace, one bond sale at a time.

States and Corporations Charge Ahead in Bitcoin Adoption Race

While the federal government deliberates, states and companies aren’t waiting.

Arizona made headlines on May 7 when Governor Katie Hobbs signed House Bill 2749, creating a state Bitcoin reserve funded by unclaimed cryptocurrencies (wallets inactive for three years). 

The law, following New Hampshire’s lead, also allows for staking yields. Lawmakers now push Senate Bill 1373, proposing to shift 10% of Arizona’s rainy-day fund into Bitcoin.

🟠The Blockchain Group announces a convertible bond issuance of ~€63.3M to pursue its Bitcoin Treasury Company strategy, bringing its total potential holdings to ~1,437 BTC after completion⚡️

Full Press Release (EN): https://t.co/Vw2mGH84Dt

Full Press Release (FR):… pic.twitter.com/xDky2hrU4s

— The Blockchain Group (@_ALTBG) May 26, 2025

Meanwhile, corporations keep charging ahead. Paris-based Blockchain Group raised €63.3 million in bonds to buy 590 BTC, adding to its growing treasury. 

Despite these adoptions, Strategy's chairman, Michael Saylor, wants bigger players in the game. 

He recently urged Microsoft to convert 10% of its $78 billion cash reserves into Bitcoin, citing BTC’s 62% five-year return versus Microsoft’s 18%. A $7.8 billion purchase today, he argues, could balloon to $80 billion if Bitcoin hits $1 million by 2030.

From statehouses to Fortune 500 boardrooms, idle cash is falling out of favor, being replaced by what many now refer to as “digital gold.”