Bitcoin (CRYPTO: BTC) could help the U.S. tackle its mounting national debt through strategic reserve and innovative Treasury products, according to Andrew Hohns, founder and CEO of Battery Finance.
Hohns told the Bitcoin Magazine in an interview that he believes Bitcoin could help offset America’s growing $40 trillion debt burden through long-term appreciation.
This could strengthen the federal balance sheet while opening new opportunities in traditional lending markets.
He identified monetary expansion, AI-driven productivity and Bitcoin adoption as key forces shaping the U.S. fiscal outlook.
Hohns proposed a strategic Bitcoin reserve and BitBonds, combining Treasury bonds with Bitcoin exposure to potentially reduce borrowing costs.
He suggested testing BitBonds through a Treasury pilot program, although their success would depend on Bitcoin’s appreciation and would not directly eliminate federal debt.
Will BTC Solve The $2 Trillion Real Estate Refinancing Problem?
Hohns warned that over $2 trillion in commercial real estate loans face refinancing within 18-24 months amid elevated borrowing costs.
Battery Finance aims to ease this pressure by combining real estate collateral with Bitcoin exposure.
Under its model, a $30 million property could secure a $25 million loan instead of the traditional $20 million-$22 million, with the additional capital invested in Bitcoin.
Sharing Bitcoin’s potential upside with lenders could offer borrowers lower rates, flexible repayments and fewer prepayment restrictions.
Hohns emphasized that the loans avoid Bitcoin-related margin calls and target high-quality, income-generating properties rather than distressed assets.
Could BTC-Backed Lending Expand Beyond Real Estate?
Accordfing to Hohns, Bitcoin-backed financing could expand into traditional credit markets, particularly for borrowers holding income-generating assets.
While volatility and institutional skepticism remain major hurdles, he argued that overcollateralized loans and digital credit products could help manage risks.
He also highlighted Bitcoin’s growing use in payments, energy and AI-driven commerce as potential demand catalysts.
Hohns expects rising institutional interest in inflation protection to accelerate Bitcoin’s integration into traditional finance.
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