If Trump goes big enough with this we could see trillions in the national debt eliminated by the effects of taking a big position in crypto and then holding it, forcing prices higher with tightened supplies. (And then higher as some of the states and other nations that have been talking about this jump in). The USG would then enjoy better terms refinancing remaining debt due to the improved balance sheet.
And if DOGE can't win the battle against the Dems/bureaucrats and continued government spending does destroy the value of the dollar, the USG will be holding the asset that will replace dollars, since it's not like we are going to adopt Chinese currency or the Euro in that scenario. So a crypto reserve is a critical move from a number of angles.
I think bitcoin is all smoke and mirrors—but at the end of the day it does not matter if we can use it to reduce the national debt.