As Bitcoin gains mainstream acceptance, nations and institutions are beginning to treat it as more than just a speculative asset—with some looking to stockpile it as a strategic reserve, much like gold.

A strategic Bitcoin reserve is a stockpile of BTC held by an entity, such as a government or institution, for strategic or financial purposes. In 2024, leading up to the U.S. Presidential election, then-candidate Donald Trump and others proposed the establishment of a strategic Bitcoin reserve for the United States.

Advocates argue that creating a national stockpile of Bitcoin and other cryptocurrencies would stabilize markets, and position the U.S. as a leader in the digital asset space.

Here’s how it works.

What is a strategic reserve?

A strategic reserve is a cache of an asset that governments or institutions hold to maintain stability, respond to crises, or influence markets.

Examples of strategic reserves include:

  • Strategic Petroleum Reserve (SPR): Established in 1975 by the United States, as an emergency crude oil stockpile. The U.S. Strategic Petroleum Reserve has a maximum capacity of 727 million barrels.