$BTC White House AI and crypto tsar David Sacks likened them to a "a digital Fort Knox for the cryptocurrency", drawing comparison to the Kentucky military base that stores a significant portion of US gold assets.

However, some crypto enthusiasts have criticised the government for not being bolder, while others have raised question marks about the lack of transparency over the process.

Sacks has ordered a full accounting of the federal government's existing crypto reserves, which he estimated at 200,000 Bitcoin alone. That's worth $17.5bn (£13.6bn) at today's prices.

Speaking to reporters at the White House ahead of a special crypto summit on Friday, Sacks said that it was a "real shame that we did not maximise value for the American taxpayer."

"What we want to do is make sure that with the remaining Bitcoin that we have," he added.

Nonetheless, Charles Edwards of the Capriole Fund, a Bitcoin and digital assets hedge fund, called Thursday's announcement "a pig in lipstick" in response to Sacks' post on X.

campaign. Former US President Joe Biden led a crackdown on crypto, citing concerns about fraud.

With additional reporting from Bernd Debusmann Jr at the White House$BTC