In light of the new executive order establishing the U.S. Strategic Bitcoin Reserve, questions arise about how to increase bitcoin holdings. A recent interview with Bo Hines discusses several potential avenues for this purpose.
What Hines Said?
During an interview with Professional Capital Management CEO Anthony Pompliano, Bo Hines mentioned two viable methods for the U.S. to enhance its bitcoin holdings, including using revenue from tariffs.
> "Hines states that the U.S. could use revenue from tariffs to buy bitcoins." — CITE_W_A
Hines also referred to the [Bitcoin Act](https://begich.house.gov/media/press-releases/congressman-nick-begich-and-senator-lummis-introduce-landmark-bitcoin-act) introduced by Senator Cynthia Lummis. He remarked that the act is being widely discussed in Capitol Hill and aims to create a strategic bitcoin reserve recognized as a national asset with plans to acquire one million bitcoins over five years using budget-neutral methods, including revaluation of gold certificates.
Other Options
Various experts have brought up other options, such as issuing Bitcoin bonds and utilizing surplus from the Exchange Stabilization Fund.
Bitcoin bonds allow investors to earn a fixed 1% annual interest paid in USD, with 90% of the proceeds funding government activities while the remaining amount could be directed towards purchasing bitcoins.
Thus, the government could access funds for bitcoin purchases without needing congressional approval.
Accounting Issues
The existing stockpile of approximately 200,000 BTC in the U.S. has been accumulated through seizures, and it is essential that its accounting be completed within 30 days of the SBR order. However, as of now, it is unclear whether an audit has taken place, which has drawn criticism towards Pompliano for not addressing this issue during the interview.
There are numerous methods the U.S. can utilize to bolster its bitcoin reserves, including revenue from tariffs and the revaluation of gold certificates. However, accounting issues remain unresolved.
