On Monday, the Atlantic released a series of unredacted messages from a Signal chat including various Trump administration officials discussing the administration’s desire to nationalize Strategy (formally Microstrategy) as a way to bolster the United States Bitcoin Strategic Reserve in a “budget neutral” manner. 

Below are the text messages that Hegseth sent to the group of 18 senior Trump officials on March 31, according to screenshots released by The Atlantic on Monday.

• TEAM UPDATE:
• 1000et: Strategy has been amassing Bitcoin for us. Saylor is prepared to run damage control from potential fallout.
• 1030et: Not sure how this move will negatively impact the price of the president’s Solana Meme Coin.
• 1045: Discussing strategies with social media influencers to spin narrative away from this being an executive order 6102 like event.
• 1055: President is concerned David Bailey will uninvite him from the Bitcoin conference if he makes this move. 
• 1100: Jason Lowery advises to do it. Says it plays perfectly into his Softwar thesis. 
• 1130: Brian Armstrong is also asking for Coinbase to be nationalized as well. It seems like he gets off on complying however he can.
• 1145: POTUS is advising to hold off until more research can be done on potential implications to his meme coin prices. MORE TO FOLLOW. We are currently clean on OPSEC. Godspeed to our crypto bags.

The messages were leaked to the Atlantic by an unnamed PODCONF official who was mistakenly added to the group chat and is concerned the events could undermine Bitcoin’s “Number Go Up.”

Why defense secretary Pete Hegseth is involved: Bitcoin seems to be a growing part of the Trump Administration’s national security policy. Financial sovereignty is a substantial part of national defense. Some speculate that Donald Trump is very proud of the way that Hegseth handled the bombing of Yemen last week. 

Why it matters: Many Bitcoin users have been critical of Strategy, due to its close proximity to Langley, VA as well its choice to custody funds with Coinbase, who also custody funds for  the United States government. The leaked Signal group chat log suggests that Strategy may have been operating as a front for the US government to amass a large portion of Bitcoin. A common saying in the Bitcoin community is “Not your keys, not your coins,” pointing to how the digital currency could be arbitrarily confiscated by governments if held by 3rd parties. 

What Hegseth is saying: It appears Hegseth understands this will likely be an unpopular move both in the business world and the Bitcoin ecosystem. When a government nationalizes a company in order to take control of their assets, it can cause uncertainty in the business world. It seems that the Trump administration is working with a series of media personalities and influencers to try and craft a narrative in an effort to manage any tensions or fallout that could result from this move. 

How this could impact Bitcoin Price: Analysts we have talked with are ambivalent on  how the nationalization of Strategy could impact the price of Bitcoin. In the short term it may cause fear and uncertainty leading to a sell off, but many believe that it’s good for price in the long term as once again, it would be a vote of confidence in the digital currency from the world’s most powerful government. 

Will this leak unwind the plan: The leak may have foiled the Trump Administration’s plans, yet it is unsure if they were  planning on doing this versus just exploring the possibility. In 1962 the Joint Chiefs of Staff presented a plan to President Kennedy called Operation Northwoods in which acts of terrorism carried out by US intelligence agencies would be committed on US soil in an attempt to manufacture consent for the invasion of Cuba. From Hegseth’s messages, the president appeared hesitant as the move may have negative impacts on the price of his cryptocurrency holdings. 

This story is continuing to break. Please check back for more updates as the story continues to develop. 

This is a guest post by Bitcoin Bugle. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.