Marathon Digital Holdings CEO Fred Thiel has a bold proposition for the United States: mine Bitcoin to fortify its strategic reserve. Speaking at Bitcoin 2025 in Las Vegas on May 27, Thiel urged the government to kickstart its Bitcoin acquisition, a move that aligns with President Donald Trump’s March executive order to establish a strategic Bitcoin reserve. The concept isn’t just blue-sky thinking—it’s a call to action for utilizing surplus hydroenergy to fuel domestic mining efforts.
A Call to Action
Thiel’s remarks come as the Trump administration faces mounting pressure to translate its strategic Bitcoin reserve initiative from paper to practice. It’s been nearly three months since the executive order went live, yet tangible steps to fill the reserve have stalled, causing frustration among industry insiders. “The U.S. making a statement that we’re going to have a strategic reserve is an empty statement unless you start putting stuff into it,” Thiel emphasized during the panel discussion.
As it stands, the reserve is intended to house Bitcoin seized through civil and criminal forfeitures, roughly 200,000 Bitcoins by current estimates. However, key stakeholders, including Senator Cynthia Lummis (R-Wyo.), view this as merely the opening act. Lummis reintroduced the BITCOIN Act of 2025, proposing a strategic pivot from underperforming assets like gold certificates to Bitcoin. “We have enough assets in underperforming assets that we can get five percent of the world’s Bitcoin without spending a single dime,” Lummis claimed, though she conceded that legislative hurdles remain. This echoes recent moves by companies like Metaplanet, which has registered a U.S. Treasury arm to bolster its Bitcoin reserve strategy, as detailed in our recent coverage.
Energy and Economics
The proposition of using excess hydroenergy for Bitcoin mining isn’t new, but Thiel’s suggestion could serve as a catalyst for the U.S. government’s strategy. By leveraging renewable energy sources, the government could adhere to the “budget-neutral” approach outlined in Trump’s executive order while also making strides in sustainable energy use. This approach could also mitigate criticisms regarding Bitcoin’s environmental impact, an issue that has dogged the cryptocurrency’s public perception.
Industry experts see potential in this plan but caution against oversimplifying the technical and logistical challenges. “Hydroenergy is a viable solution, but scaling it to meet the Bitcoin network’s demands is another beast entirely,” noted crypto analyst Jenna Rogers. The plan is ambitious, yet it offers a glimpse into how renewable energy could reshape not just the cryptocurrency landscape but also broader energy policies.
Legislative Hurdles
The road to a fully functional strategic Bitcoin reserve is pockmarked with legislative obstacles. Lummis herself acknowledged the difficulties in moving the BITCOIN Act forward, pointing out that Congress is currently preoccupied with stablecoin and market structure legislation. “It’s going to be a heavier lift than I thought because so many people don’t understand Bitcoin,” she admitted.
This uncertainty extends to the timeline for any significant progress. While the strategic reserve is intended to evolve over the next two to five years, the immediate future appears less promising. The delay raises questions about the government’s readiness to engage with Bitcoin on a strategic level, especially when many policymakers are still grappling with the basics of cryptocurrency. Meanwhile, Metaplanet’s plans to raise $250M for its Bitcoin strategy, as reported in our article, highlight the growing interest and investment in this area despite regulatory hurdles.
The Road Ahead
Yet, despite the obstacles, the potential rewards are significant. A robust strategic Bitcoin reserve could position the U.S. as a leader in the digital currency arena, offering a hedge against economic instability and enhancing national security. Moreover, it could spur innovation in both the cryptocurrency and energy sectors.
The initiative is not without its critics, who argue that the focus on Bitcoin may be misplaced given the myriad of challenges—economic and otherwise—that the nation faces. However, advocates like Thiel and Lummis argue that the strategic Bitcoin reserve could offer a fresh avenue for economic growth and innovation.
As the dialogue around Bitcoin and its role in national strategy continues to evolve, one thing is clear—this is a story still being written. Whether the U.S. government will take decisive steps to mine Bitcoin remains uncertain, but the conversation around it is gathering momentum. What happens next could redefine not just the cryptocurrency market, but the economic landscape at large.
Source
This article is based on: MARA’s Fred Thiel Says U.S. Should Start Mining Bitcoin to Fill Strategic Reserve
Further Reading
Deepen your understanding with these related articles:
- Bitcoin is a matter of national security — Deputy CIA director
- Strategy’s $84B Bitcoin Expansion Plan Backed by Wall Street Analysts
- Arizona Governor Calls Crypto an ‘Untested Investment,’ Vetoes Bitcoin Reserve Bill
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
