Introduction
Jack Mallers, founder and CEO of Strike, has stirred renewed debate over the United States’ reluctance to reveal the size of its Bitcoin holdings. In a post on X, Mallers characterized the delayed audit of the Strategic Bitcoin Reserve (SBR) as a “branding problem,” suggesting that the U.S. may be holding back because its reserve is too modest to speak of—a stance he sees as ultimately good news for the crypto market.
Strategic Bitcoin Reserve: Promise and Silence
On March 6, 2025 Executive Order 14233 formally established the SBR and created a reserve using forfeiture Bitcoin in an effort to position the U.S. as the leader of digital assets. The order mandated that Treasury publish a report on the legal and investment framework in 60 days, but by early May that deadline had passed, and no report from Treasury had been made. Instead, follow-up policy documents, including the July 30 digital assets strategy report, offered only a passing mention of the SBR without any figures or detailed updates.
What the Data Reveals (or Hides)
Early expectations placed U.S. holdings at more than 200,000 BTC—stemming from proceeds of major seizures like Silk Road and the Bitfinex hack. Yet, a mid July Freedom of Information Act (FOIA) release revealed that the U.S. Marshals Service currently holds just 28,988 BTC—around USD 3.3 billion at present prices—prompting speculation that large quantities were quietly sold off in prior years. Blockchain data shows federal wallets transferred 30,175 BTC to Coinbase Prime in April 2024, with additional transfers worth USD 1.9 billion in December 2024.
Mallers’ Take: Silence as Strength
Mallers perceives the audit delay not as a warning flag—but as a “bullish red flag.” He proposes that the real reason for withholding information is embarrassment at how small the reserve may be, and suggests that the government may be waiting to rebuild its position before announcing numbers publicly.
He urges that if the Treasury ramps up its Bitcoin accumulation—given the limited available supply, with around 92% already mined and much held long-term—buy-side pressure could intensify, pushing prices higher. As of early August, Bitcoin is trading north of USD 114,000 and recently reached a peak of USD 123,000—more than a 100% increase year-over-year.
Legislative Momentum and State-Level Action
On the federal level, Senator Cynthia Lummis has re-introduced legislation that would authorize the Treasury to acquire up to one million BTC over five years, though it is still awaiting committee hearings.
Meanwhile, several U.S. states are moving forward with their own reserve initiatives. New Hampshire authorized its state treasurer to invest in digital assets including Bitcoin. Arizona created a Bitcoin and Digital Assets Reserve Fund to handle unclaimed digital property. And Texas recently enacted a law enabling the creation of a state-level Bitcoin reserve fund, becoming the third state to do so following New Hampshire and Arizona.
Risks, Responsibilities, and Next Steps
Setting up a national SBR represents an important change in how the federal government thinks about crypto assets – from being merely a regulator of, to being a player in, the crypto market. Achieving this will require compliance protocols, cooperation of all of the agencies involved in custody, key management, anti money laundering, and risk controls.
Economists remain skeptical. A survey from the University of Chicago in February 2025 found there was no agreement on whether the value of borrowing to create such a reserve is beneficial for the U.S. economy, and, whether anyone believes holding crypto assets altered their portfolio risk. Ratings agencies, like S&P Global, think that the executive order was a much more symbolic than real act.
Conclusion
Jack Mallers argues that the U.S. delay in auditing its Bitcoin reserve may signal strategic restraint rather than negligence—and that this could become a bullish catalyst if accumulation follows. Nonetheless, uncertainty continues as policymakers and agencies deal with regulatory, legal and technical issues. If Washington actually means to lead in digital assets, what will be done next—whenever that may show up—could signal a lot.
