tl;dr
Billionaire venture capitalist Chamath Palihapitiya suggests that the US government can establish a federal sovereign wealth fund by leveraging its Bitcoin holdings, which currently amount to 198,109 BTC worth $19.408 billion. He proposes utilizing existing assets, such as TikTok shares, BTC holding...
Billionaire venture capitalist Chamath Palihapitiya suggests that the US government can establish a federal sovereign wealth fund by leveraging its Bitcoin holdings, which currently amount to 198,109 BTC worth $19.408 billion. He proposes utilizing existing assets, such as TikTok shares, BTC holdings, revenues from land/drilling deals, and sales of abandoned real estate, to kickstart the fund with an estimated $50-100 billion over two to three years.
This fund, aimed at long-term financial stability and economic growth, would be invested in various financial instruments, including index funds, bonds, private equities, hedge funds, and venture capital.
President Donald Trump signed an executive order for the Treasury and Commerce Departments to create a fund designed to provide long-term financial stability, economic growth, and protection against economic shocks. Palihapitiya suggests that the Trump administration can get the project off the ground quickly by capitalizing on assets the US government already holds, including its Bitcoin trove.
“I think we can start by slowly selling down our 50% share of TikTok borrowing against our BTC holdings if we don’t want to sell them. We can then add to this by directing any revenues from land/drilling deals and sales of any real estate from all of the abandoned buildings. This is ~$50-100 billion with little effort over the first two to three years. No borrowing. It should be invested in a mix of index funds, bonds, private equities, hedge funds, and venture capital (VC) where VC is less than 10% and should shrink as the denominator gets bigger.”
According to Bitcoin Treasuries, the US government currently holds 198,109 BTC worth $19.408 billion. Sovereign wealth funds are government-owned investment funds that typically use excess revenues, often from natural resources like oil, to grow money for the future. While states like Alaska have been running their sovereign wealth funds for years, the federal government itself has never utilized one.