President Donald Trump signed an executive order Thursday evening, establishing a Bitcoin Strategic Reserve. But Bitcoin fell on the news, at least initially. So did Bitcoin holder Strategy.
White House Crypto and AI Czar David Sacks wrote on social site X that the Bitcoin Strategic Reserve will be funded solely with bitcoin seized in criminal and civil cases. So it won't cost taxpayers anything. But it also means the U.S. government won't be buying any bitcoin.
Bitcoin tumbled to $85,135 Thursday night before recovering to about $87,000. The bitcoin price was $89,025.14 as of 4 p.m. ET, down 1.6% vs. 24 hours earlier.
Strategy stock, formerly MicroStrategy, slumped 6.7% in late trading. MSTR stock dipped 1.4% to 304.11 in Thursday's session.
The White House will hold a crypto summit on Friday.
On Sunday, Trump posted on his Truth Social site that an upcoming crypto reserve would also include altcoins such as Ethereum, XRP, Solana and Cardano. But Treasury Secretary Howard Lutnick signaled earlier this week that bitcoin would stand apart.
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