Digital Wealth Alpha Of The Week #10

Good morning Digital Assets investor,

Bitcoin has become a strategic asset now secured at the “Digital Fort Knox” of the United States of America, the biggest economic powerhouse of the world, seems like we held on to our magic internet money long enough to see a new dawn when we’re no longer considered criminals, gamblers or just merely dismissed or frowned upon… Instead our magic beans are now the new most precious asset in the world! Are you paying attention Europe?

1. Week #10 Market Snapshot

President Trump has finally issued the long awaited Strategic Bitcoin Reserve Executive Order, funded by federal Bitcoin holdings seized through forfeiture, ensuring no cost to taxpayers. Additionally, a U.S. Digital Asset Stockpile will be established for other confiscated digital assets.

The initial market rally lost momentum as investors are still reassessing the broader implications of the government's new approach to digital assets, tariffs and the economy in general in a new broader macro-economic and geopolitical arena.

2. President Trump signs the Strategic Bitcoin Reserve executive order.

On March 6th, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve, funded with Bitcoin forfeited in criminal or civil cases, ensuring no cost to taxpayers. The U.S. government is estimated to hold around 200,000 bitcoins, though a full audit has never been conducted. The Executive Order mandates a comprehensive accounting of federal digital asset holdings. It prohibits selling any Bitcoin in the Reserve, positioning it as a long-term store of value similar to Fort Knox. The move aims to prevent premature sales, which have previously cost taxpayers billions, while allowing Treasury and Commerce officials to develop budget-neutral strategies for acquiring more Bitcoin.

Additionally, the Executive Order establishes a U.S. Digital Asset Stockpile, comprising other digital assets obtained through forfeiture. The government will not actively acquire more assets beyond those seized, with the Treasury Department overseeing their management. This initiative aligns with President Trump’s vision of making the U.S. a global leader in cryptocurrency. The announcement acknowledges the efforts of the President’s Working Group on Digital Asset Markets, including key officials like Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Executive Director Bo Hines, for their role in executing this policy at "tech speed."

3. The White House hosts the first ever Digital Assets Summit

On March 7th, President Trump hosted a White House summit with key cryptocurrency leaders, including executives from Coinbase and Strategy, administration officials, and lawmakers. The primary focus was the creation of a Strategic Bitcoin Reserve. The summit also addressed regulatory challenges, with industry leaders advocating for clearer guidelines to support growth and stability. Treasury Secretary Scott Bessent emphasized the role of stablecoins in maintaining the U.S. dollar's global dominance. 

While the crypto industry largely welcomed the initiative, some investors were disappointed by the lack of stronger government support, leading to a slight dip in Bitcoin prices after the event. Overall, the administration's strategy is seen as a move to enhance U.S. economic competitiveness through digital assets.

4. Texas passes Strategic Bitcoin Reserve legislation (SB 21) in the Senate

Texas, the 8th largest economy in the world (with a GDP of over $2.6 trillion), has passed SB 21, allowing the state to invest public funds in Bitcoin, aligning with President Trump's push for a U.S. crypto reserve. State Senator Charles Schwertner emphasized Bitcoin's strength as a reserve asset amid economic uncertainty. As a global economic powerhouse, Texas's move positions it as a leader in state-backed crypto investments, potentially influencing other states to follow suit. (CB)

5. The Office of the Comptroller of the Currency lifted restrictions on banks preventing them from holding bitcoin.

   US Banks legally can now:

• Be validators on public networks.

• Custody digital assets for customers

• Hold Stablecoins

  Probably nothing!

6. Mexican Billionaire, Ricardo Salinas, reports 70% BTC allocation

Ricardo Salinas, worth $4.6 billion, has increased his Bitcoin allocation to 70% of his portfolio, up from 10% in 2020. The rest is invested in gold and mining stocks. Calling Bitcoin the "hardest asset in the world," he urged investors to buy and hold, citing its fixed supply. Salinas first invested in Bitcoin when it was $200 and has since integrated it into his business ventures, though regulatory hurdles have slowed efforts like bringing Bitcoin to Banco Azteca.

Meme of the week:

Follow this space to receive the latest Digital Assets intelligence updates as this trends accelerate.

-DWI

Disclaimer: This content is for information and education purposes only and it is not intended to serve as investment, financial, tax or legal advice. Do your own research before investing.