ARK Invest founder Cathie Wood said the next phase of the US Bitcoin Strategic Reserve could involve direct BTC purchases in the open market instead of relying mainly on crypto seized through law enforcement actions. Speaking on the “Bitcoin Brainstorm” podcast on January 9, 2026, she said that kind of move may be necessary if the administration wants to reach its original target of 1 million BTC.
A move beyond seized assets
Wood said the reserve has so far been funded largely through confiscated holdings, while Washington has shown reluctance to use taxpayer money for fresh purchases. She expects that stance to change. The report links that possibility to Senator Cynthia Lummis and the proposed BITCOIN Act of 2025, which is framed as an effort to diversify the national balance sheet, support the dollar, and address the country’s debt burden.
Political pressure around the 2026 midterms
Wood also argued that support from the crypto sector helped Donald Trump return to the White House. With the 2026 midterm elections approaching, she said the president is trying to keep his political momentum and avoid slipping into lame-duck status. In that reading, pushing the US Bitcoin Strategic Reserve higher on the policy agenda also serves as a signal to core supporters while reinforcing Trump’s image as a leader focused on future-facing financial policy.
States are advancing their own reserve plans
The report says activity is not limited to the federal level. Florida recently introduced Senate Bill 1038, which would create a state-managed digital asset reserve. Under the proposal, the state could allocate up to 10% of public funds to digital assets with a market capitalization above $500 billion. At current levels, that means Bitcoin. Texas and Arizona were also cited as states moving in a similar direction, showing that the reserve concept is spreading beyond Washington.
Tariff fears added to recent BTC volatility
The policy path has also been unsettled by macro headlines. According to the report, the administration floated a 500% tariff on countries that continue buying Russian oil. That sparked concern over a wider trade conflict and pushed digital assets into a volatile stretch, with Bitcoin moving between $85,000 and $102,000. The article notes that some observers still see those swings as temporary compared with the longer-term demand that could come from a government-backed Bitcoin reserve.
The discussion around the US Bitcoin Strategic Reserve has now moved well beyond campaign rhetoric and into a more concrete debate about national budgeting and asset allocation. The immediate question is whether the Treasury will begin open-market purchases as part of the push toward the 1 million BTC target.