Pentagon Brass Secretly Pivots to Bitcoin as China Hedge

Behind closed doors, US military strategists are reportedly stacking sats—not stocks—as geopolitical tensions flare. Forget gold reserves or Treasury bonds; the new cold war weapon might just be a decentralized ledger.

Why Bitcoin? Because bullets can't stop a blockchain.

Wall Street analysts—busy shorting meme stocks—somehow missed the memo. Meanwhile, generals quietly diversify into the only asset China can't confiscate with a flick of a Great Firewall switch. Cynical? Maybe. But in finance, the best hedge is often the one your rivals don't see coming.

Senator Lummis made her remarks in the context of ongoing tensions between the U.S. and China, a relationship that was heavily marked by trade conflicts during the TRUMP administration. While tariffs were initially imposed on multiple U.S. trading partners, most were later lifted except for those targeting China. The two countries ultimately agreed on a temporary trade deal, which helped reduce some of the strain.

At the 2025 Bitcoin conference, Senator Lummis emphasized several legislative priorities, focusing on market structure reforms, stablecoin regulations, upcoming crypto tax policies, the idea of a national Bitcoin reserve, and the impact of Bitcoin mining.

Senator Lummis argued that Bitcoin should play a role in the U.S. government’s long-term financial planning. Pointing to the nation’s $37 trillion debt, she suggested that gradually acquiring one million Bitcoins over 20 years could help ease this financial strain. She also proposed that underutilized government assets could be shifted into Bitcoin investments, eliminating the need for new debt.

“Bitcoin is such an important Global Strategic asset and it is not only important in the economy, but in our global defense because there are components to our defense,” Senator Lummis stated at the time. 

As the conversation around digital currencies gains momentum, industry experts and lawmakers are paying close attention to the potential impact of integrating Bitcoin into national financial planning.

Such initiatives could not only transform how governments manage debt and assets but also redefine economic power dynamics on the global stage. The coming years will be crucial in determining how cryptocurrencies fit into broader economic and strategic policies.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.