US Transfers $2 Billion in Bitcoin Following Trump’s Strategic Stockpile Proposal

In a surprising turn of events, the U.S. government has moved $2 billion worth of Bitcoin shortly after former President Donald Trump announced plans for a “strategic national Bitcoin stockpile” if he returns to office.

Details of the Bitcoin Transfer

According to Arkham Intelligence, a blockchain analysis platform, nearly 29,800 Bitcoin (BTC) were moved from a government wallet to an undisclosed wallet on July 29. This wallet previously held Bitcoin that was confiscated from the dark web marketplace Silk Road.

The funds have since been transferred to another unknown address.

Context of the Transfer

This transfer of Bitcoin follows Trump’s address at the Bitcoin 2024 conference, where he made several pro-crypto statements. In his speech, he emphasized that the U.S. government would not sell its existing Bitcoin holdings and proposed measures to make the U.S. the “crypto capital of the world.”

Additionally, Senator Cynthia Lummis from Wyoming introduced a bill aimed at designating Bitcoin as a strategic reserve asset for the nation. Her proposal includes a plan to acquire 5% of Bitcoin’s total supply to hold as a government asset, likening the move to the historical Louisiana Purchase of 1803.

Reactions to the Move

Responses to the transfer have varied. Mike Novogratz, CEO of Galaxy Digital, criticized the government’s timing, labeling the action as “tone deaf” given Trump’s recent declarations about Bitcoin.

Novogratz expressed his frustration on social media, stating, “Moving Silk Road BTC two days after Trump’s pledge to not move them is just dumb!!!!”

Possible Implications

Some analysts suggest that this transfer might be associated with an agreement made between the U.S. Marshals Service and crypto exchange Coinbase on July 1, where Coinbase was tasked with managing and safeguarding government-owned crypto assets.

The U.S. government currently holds approximately $12 billion in Bitcoin, primarily acquired through various confiscations. However, not all experts are optimistic about Bitcoin becoming a recognized strategic reserve asset in the U.S. BlockTower Capital’s CIO, Ari Paul, estimated the chances of this happening within the next four years to be just 10%.