Treasury Secretary Scott Bessent initially dashed the hopes of many Bitcoin enthusiasts by stating that the Strategic Bitcoin Reserve would comprise only the existing $15 billion to $20 billion already held by the government. Furthermore, he indicated that no new purchases were planned. However, later on Thursday, Bessent contradicted his earlier remarks by asserting that his department is ‘committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve.’

In his statements, Bessent highlighted that any new acquisitions would supplement the tokens forfeited to the government, which would form the ‘foundation’ of the reserve. This discussion follows an executive order signed by U.S. President Donald Trump earlier in March aimed at establishing a strategic Bitcoin reserve, a cause for which Bessent has been vocal.

Notably, as Bitcoin values fluctuated, it was noted that the cryptocurrency was trading at about $118,000 late Thursday, a stark contrast from its earlier peak of $124,000 that day. The price drop is significantly attributed to a Producer Price Index report that raised concerns regarding inflation and the Federal Reserve’s interest rate adjustments.