Pentagon nuclear review revives Bitcoin debate as BTC holds near $64,500

A reported Pentagon review of U.S. nuclear strategy has pulled Bitcoin back into the national-security conversation, even though the framework itself does not formally include the token. NBC News reported on Aug. 5 that Defense Department policy chief Elbridge Colby is drafting a classified plan that could expand the role of shorter-range tactical nuclear weapons in a possible regional war involving China or Russia, giving the US president more limited nuclear options than a doctrine centered mainly on long-range retaliation. The report has drawn attention because it overlaps with separate military work on Bitcoin and digital-asset infrastructure. In April, Admiral Samuel Paparo of US Indo-Pacific Command told lawmakers the military was operating a Bitcoin node and testing the network in an operational setting, while Defense Secretary Pete Hegseth later said classified digital-asset initiatives could give the US leverage across multiple scenarios. Those disclosures suggest officials are evaluating Bitcoin as a cybersecurity, communications or value-transfer tool rather than as part of nuclear planning. The debate also intersects with the Strategic Bitcoin Reserve, created by President Donald Trump through a March 2025 executive order and funded with forfeited BTC. The order says holdings in the reserve "shall not be sold," while Treasury and Commerce may explore budget-neutral ways to acquire more. The White House said in 2025 that the federal government controlled roughly 200,000 BTC, though current holdings are hard to verify because seized assets can be returned to victims or moved between agencies. Bitcoin traded near $64,500 on Aug. 5, in an intraday range of about $63,860 to $64,650, with no clear market reaction to the Pentagon report. The link remains indirect unless the Pentagon announces a formal procurement, reserve or operational policy involving BTC.