MARA’s Fred Thiel Says U.S. Should Start Mining Bitcoin to Fill Strategic Reserve
Marathon Digital Holdings CEO Fred Thiel proposes a method for the U.S. government to fulfill President Trump’s plan for a strategic Bitcoin reserve: domestic Bitcoin mining. Speaking at Bitcoin 2025, Thiel suggested utilizing excess hydroelectricity to generate Bitcoin, aligning with Trump’s “budget-neutral” acquisition strategy outlined in a March executive order. The lack of progress in establishing this reserve since the order’s issuance is a growing concern.
Thiel emphasized the importance of tangible action, stating that the reserve’s existence is meaningless without active acquisition of Bitcoin. Currently, the reserve is intended to incorporate Bitcoin seized through civil and criminal forfeitures—an estimated 200,000 Bitcoin. However, industry figures and government officials, including Senator Cynthia Lummis, advocate for more significant acquisitions beyond these forfeited assets.
Senator Lummis reintroduced the BITCOIN Act of 2025, aiming to formalize Trump’s initiative. Her proposal suggests a two-to-five-year conversion of a portion of U.S. gold certificates into Bitcoin, following the initial incorporation of forfeited Bitcoin. Lummis believes this strategy could acquire five percent of the world’s Bitcoin without direct government spending, leveraging underperforming assets.
Despite this ambitious plan, legislative hurdles remain. Lummis acknowledges that progress on the BITCOIN Act, and broader efforts to fill the strategic reserve, hinges on the advancement of stablecoin and market structure legislation in Congress. She cites a lack of Bitcoin understanding among lawmakers as a significant obstacle to achieving these goals. The path forward for the U.S. government’s Bitcoin reserve remains uncertain, contingent upon both legislative action and the successful implementation of innovative Bitcoin acquisition strategies.
