Michael Saylor Advocates for U.S. Acquisition of 20% of Bitcoin Supply

Jimmy Aki
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Michael Saylor, founder of Strategy, formerly MicroStrategy, proposed that the U.S. acquire a significant Bitcoin reserve, specifically 20% of the total Bitcoin supply.

Michael Saylor’s Proposal for a U.S. Bitcoin Reserve

Speaking at the Conservative Political Action Conference (CPAC) in Washington D.C. on February 20, Saylor emphasized the strategic importance of such a move.

He stated, “There’s only room for one nation-state to buy up 20% of the network, and obviously, I think it should be the United States.”

Saylor believes that by securing approximately 4 to 6 million Bitcoins, the U.S. could strengthen the dollar and address its national debt.

He elaborated, “The real promise is if you own 4-6 million BTC, you’re going to pay off the national debt.” At current market prices, acquiring 4 million Bitcoins would require an investment of approximately $392 billion.

The concept of a national Bitcoin reserve has been gaining traction in political circles.

In July 2024, Senator Cynthia Lummis introduced a bill proposing the establishment of a “strategic Bitcoin reserve,” aiming for the Treasury and the Federal Reserve to purchase a million Bitcoins over five years.

This proposal suggests using Federal Reserve surpluses and gold certificate revaluations to fund the Bitcoin supply.

However, critics argue that holding such a reserve could pose financial risks due to Bitcoin’s volatility and the potential lack of liquidity.

An article from the Financial Times highlights concerns that a Bitcoin reserve might benefit private holders more than enhancing U.S. financial resilience.

Growing Support and Strategic Implications of a U.S. Bitcoin Reserve

Saylor addressed potential risks by emphasizing the importance of the U.S. acting swiftly. He warned against other nations, such as Saudi Arabia, Russia, China, or European countries, acquiring significant portions of Bitcoin first.

Saylor’s advocacy aligns with his company’s actions; Strategy has aggressively increased its Bitcoin holdings since 2020.

At press time, Strategy holds 478,740 BTC, valued at about $47.13 billion, making it the largest corporate holder of the cryptocurrency.

The idea of a U.S. Bitcoin reserve has also found support from other political figures. Dennis Porter, co-founder of the Satoshi Action Fund, has been a vocal proponent, and the concept gained momentum with endorsements from figures like former President Donald Trump.

A national Bitcoin reserve could provide the U.S. with a strategic advantage in the evolving digital economy despite concerns about its potential benefits for existing holders. The discussion reflects a growing interest in integrating Bitcoin into national financial strategies.

As the cryptocurrency market evolves, discussions about national reserves and strategic holdings will likely become more prominent in policy-making circles.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.