Strike CEO: US Bitcoin Audit Delay a Bullish Red Flag
Strike CEO Jack Mallers criticized the US government’s Bitcoin audit delay, arguing that hidden BTC holdings reflect a small position. Mallers highlighted that the March executive order created a Strategic Bitcoin Reserve (SBR) but the absence of an audit suggests Washington owns insufficient coins. A mid-year FOIA response revealed only 28,988 BTC in federal custody, far below earlier estimates. On-chain data also show government wallets transferred over 30,000 BTC to Coinbase Prime in 2024. Mallers views the Bitcoin audit delay as a branding issue but believes it signals imminent accumulation by the Treasury, which could intensify buy-side pressure amid a constrained supply (92% of BTC mined). He notes potential Congressional backing via bills to acquire up to one million BTC. Traders should watch for increased demand and tighter supply, a bullish takeaway for Bitcoin’s price outlook.
Bullish
Jack Mallers argues that the US government’s delay in disclosing its Bitcoin holdings signals a strategic buy-up rather than complacency. Historical on-chain transfers of over 30,000 BTC to Coinbase Prime and FOIA data showing only 28,988 BTC suggest earlier sales by past administrations. The Bitcoin audit delay, therefore, likely precedes resumed accumulation under the Strategic Bitcoin Reserve initiative. In a market with 92% of BTC mined and dwindling liquid supply, any large-scale Treasury purchases would add significant upward pressure. Similar patterns have emerged when institutional or sovereign entities announce accumulation plans, often triggering bullish sentiment and price rises. In the short term, uncertainty around exact holdings may cause volatility, but trader anticipation of US Treasury buying could drive demand. Over the long term, formalizing large-scale acquisitions by the deepest-pocketed buyer could cement Bitcoin as a strategic reserve asset, reinforcing bullish fundamentals and encouraging further institutional adoption.