Recent developments indicate that Washington is positioning itself to leverage cryptocurrency in innovative ways, particularly by engaging in partnerships with Bitcoin miners. Bo Hines, the executive director of the President’s Council of Advisors on Digital Assets, emphasized the potential of such collaborations to enhance the nation’s Bitcoin holdings without incurring additional public spending. In a discussion with Fred Thiel, the CEO of Marathon Digital Holdings, Hines outlined exciting prospects for a strategic collaboration that could benefit both miners and the federal government.

Exploring New Avenues for Bitcoin Acquisition

Established under Executive Order 14233 on March 6, 2025, the Strategic Bitcoin Reserve aims to build the nation’s Bitcoin stockpile through innovative, budget-conscious strategies. This involves collecting BTC through existing forfeited assets and implementing creative mechanisms to increase reserves.

According to Hines, the inter-agency working group is currently exploring frameworks that would enable industrial miners to redirect a percentage of their block rewards into Treasury wallets. In return, these miners could benefit from long-term agreements for energy supply or expedited project approvals. “We’ll collaborate with various departments and are committed to finding these inventive pathways,” he noted in his talk with Thiel.

Thiel, whose organization runs a substantial fleet of bitcoin-mining equipment, pointed out that this initiative wouldn’t just help the government; it would also enhance the domestic bitcoin mining capacity. “By collaborating with the government, we can achieve dual objectives—facilitating Bitcoin accumulation while boosting the hash rate within the US,” he stated. Hines responded positively, confirming the administration’s enthusiasm for such initiatives.

The dialogue also shifted towards recent legislative movements, particularly the GENIUS Act, which recently received noteworthy bipartisan backing in the Senate Banking Committee. Hines characterized this piece of legislation as “transformative,” stressing that the introduction of stablecoins tied to the dollar could revolutionize payment systems and sustain the country’s competitive edge globally.

Looking ahead, Hines forecasted that regulated stablecoins could elevate the overall digital asset market to an astonishing “$15 to $20 trillion,” unlocking new access to liquidity that would cyclically benefit Bitcoin as investors gain the ability to seamlessly navigate between asset classes.

When prodded by Thiel on the ideal size for the Strategic Bitcoin Reserve, Hines shrugged off the inquiry, calling it “unnecessary” while reiterating a strong commitment to maximize Bitcoin acquisition efforts. “Our goal is to gather as much Bitcoin as possible,” he asserted.

The Executive Order came with a stringent timeline. By April 5, 2025, every federal entity was required to submit a comprehensive assessment detailing their legal authority and an on-chain audit of any digital assets held. Furthermore, by May 5, 2025, the Treasury was tasked with delivering an evaluation on managing the Strategic Bitcoin Reserve and associated digital assets.

As of now, specific reports related to these initiatives have not been made public. In response to inquiries regarding this opacity, Hines clarified that while there’s no obligation for these documents to be disclosed, the administration retains the option to release them in the future.

At the time of writing, Bitcoin was trading at $109,034, reflecting ongoing interest and volatility in the market.