US May Purchase $100 Billion in Bitcoin This Year, Says Coinbase Executive

According to Sebastian Bea, the head of Coinbase Asset Management, an adjustment in how the government evaluates its gold holdings could release enough budget-neutral funds for a significant Bitcoin acquisition nearing $100 billion—potentially well ahead of market projections.

During a recent 40-minute discussion on The Scoop with Frank Chaparro, Bea presented the concept as something that’s obvious yet overlooked. “Sometimes ideas are so monumental that they either go unheard or are willingly ignored,” he pointed out. “But this is one they can’t afford to dismiss.”

The US gold reserve, currently at 261.5 million ounces, continues to be valued at $42.22 per ounce—a figure that dates back to 1973. With the current market price hovering around $3,303, the disparity between its recorded value and actual worth is nearly $900 billion.

“Currently, due to regulation, the US government values its Fort Knox gold at just over $42,” Bea observed. “Simply updating that figure to reflect current market conditions could yield an additional 900 billion to perhaps… I’ve heard estimates from a billion to a trillion dollars.”

Transitioning Valuation to Bitcoin

Bea argues that Congress could enact a brief bill to amend 31 U.S.C. § 5117, allowing for the issuance of higher-denomination gold certificates while allocating the gains from this reevaluation to a Treasury account as part of a strategic approach to Bitcoin reserves—without exacerbating federal debt.

“Once the reevaluation happens, it creates a mark-to-market gain of $900 billion, which the Treasury could then utilize in a budget-neutral way for various acquisitions, likely including Bitcoin,” he suggested.

This calculation aligns with Senator Cynthia Lummis’ BITCOIN Act introduced recently, which mandates the Treasury to acquire one million BTC (valued at approximately $100 billion) over five years without contributing to the deficit.

Bea contended that if the US were to make such a large purchase—around 5.5% of Bitcoin’s current $1.8 trillion market cap—it would almost certainly prompt reactions from other nations. “It’s difficult to envision a scenario where other countries would not feel the urge to respond in some way,” he remarked, noting that the trend might echo last year’s gold-buying spree by central banks, which totaled a record 1,037 tonnes.

Bea elaborated that gold purchases by central banks are driven by the overarching debt situation and economic uncertainties. “Is it really that outlandish to consider saving a portion in Bitcoin, perhaps at a ninety-to-ten ratio, especially as the world becomes increasingly digital?”

Timeline for Action

Although Bea refrained from specifying a timeline, he indicated to Chaparro that this legislative change could potentially occur within the year. He suggested the impetus for such a move might stem from lawmakers looking for funding offsets or from Treasury if there’s growing political support for the Lummis bill.

“Once you grasp how the financial systems operate,” he concluded, “it becomes clear that the government can adjust gold valuations and purchase Bitcoin while remaining budget-neutral. The real question now is the political willingness to make it happen.”

At the time of this report, Bitcoin was trading at $93,422.