Trump May Buy Bitcoin For Strategic Reserve Before Midterms To Avoid Looking Like A ‘Lame Duck’, Says Cathie Wood

• The current U.S. Bitcoin reserve consists solely of forfeited assets held under executive order.
• Ark Invest founder Cathie Wood said Wood stated there were several reasons Trump is likely to continue supporting crypto.
• "The most important one is that he doesn’t want to be a lame duck," Wood said. 

Ark Invest founder Cathie Wood said President Donald Trump is likely to authorize the government to buy up to 1 million Bitcoin (BTC) ahead of the U.S. midterm elections later this year.

According to her, political incentives and policy groundwork already point in that direction. "The original intent was to own 1 million Bitcoins, so I actually think they will start buying," Wood said in an episode of ‘Bitcoin Brainstorm’ by Ark Invest.

Bitcoin’s price edged 0.4% higher in the last 24 hours to around $90,500. The broader cryptocurrency market was also subdued. Retail sentiment around BTC on Stocktwits remained in ‘extremely bullish’ territory over the past day, with chatter at ‘high’ levels.

Why Would Trump Buy 1 Million Bitcoin?

Wood stated there were several reasons Trump is likely to continue supporting crypto. 

"The most important one is that he doesn’t want to be a lame duck," Wood said. "He wants to have another one or two productive years, and I think he sees crypto as a path to the future."

She added that his family’s stake in the crypto industry’s success and that the "crypto community" was "part of the reason he won the presidency" are also likely to impact the Trump administration’s push to stock up on Bitcoin. 

Trump’s Bitcoin Reserve Still Limited To Seized Assets

Wood noted that while the Trump administration established a strategic Bitcoin reserve, it has so far relied only on assets obtained through government seizures rather than market purchases.

"It seems as though there has been reticence about actually buying Bitcoin for the strategy reserve. So far, it's confiscated [Bitcoin]," Wood said, referring to the assets seized by government forfeiture that Trump pledged not to sell. 

Crypto-Friendly Trump Administration

Last year, Trump signed an executive order directing the federal government to treat seized Bitcoin as a strategic national asset. The order also instructed the Treasury and Commerce Departments to explore “budget-neutral” strategies to expand the government’s Bitcoin holdings, though no purchases have yet been announced.

The administration has also created a crypto-focused working group chaired by Special Advisor for AI and Crypto David Sacks and supported legislation such as the GENIUS Act. The market structure bill is slated for a markup next week.

Wood said that Trump is also likely to push for a de minimis tax exemption for cryptocurrency transactions, which would eliminate capital gains taxes on small crypto payments and improve everyday usability.

Read also: Solana Rallies While Bitcoin Stalls Near $91,000 Ahead Of Trump Tariff Ruling, Jobs Data

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