Strategy co-founder Michael Saylor has recently made a bold proposal, urging the US government to acquire up to 20% of Bitcoin’s total supply. Saylor believes that such a move could potentially strengthen the dollar and help offset the national debt. Speaking at the Conservative Political Action Conference (CPAC) on Feb. 20, Saylor emphasized the importance of Bitcoin as a strategic asset, warning that failing to take action could allow rival nations to gain a competitive advantage.
According to Saylor, there is limited room for a nation-state to accumulate a significant portion of the Bitcoin network. He expressed concerns about other countries such as Saudi Arabia, Russia, China, and Europe potentially acquiring Bitcoin before the US does. Saylor suggested that acquiring between 4 to 6 million BTC could potentially cover the entire US national debt. However, he did not provide specific details on how this ambitious plan would be executed. He also mentioned that the government could acquire Bitcoin “at no cost” by leveraging its ability to issue debt.
Saylor’s proposal comes at a time when state-level efforts to incorporate Bitcoin into public reserves are gaining traction. Several states have introduced legislation to establish state-controlled Bitcoin reserves, and President Donald Trump has established a working group to explore the feasibility of a federal Bitcoin stockpile. States like Texas, Utah, Pennsylvania, Wyoming, and Arizona have either introduced or advanced legislation to allocate a percentage of public funds to BTC. Utah’s bill recently passed a House committee, while Arizona’s Senate Finance Committee approved a similar measure.
Despite the growing interest in incorporating Bitcoin into government reserves, economic experts remain divided on the issue. The European Central Bank (ECB) has raised concerns about central banks holding BTC in their treasuries.
On the corporate front, the trend of companies adopting Bitcoin as a strategic asset has been on the rise. Publicly traded companies now hold nearly 1 million BTC, marking a 31% increase from the previous year. Strategy, formerly known as MicroStrategy, has been a frontrunner in this trend, expanding its Bitcoin reserves to 478,740 BTC as of mid-February. The company has realigned its corporate strategy around Bitcoin accumulation and recently announced workforce reductions to allocate more resources towards purchasing Bitcoin.
One of the key drivers behind corporate adoption of Bitcoin is the recent change in accounting rules, allowing companies to mark Bitcoin to market. This means they can now recognize unrealized gains as profits, making Bitcoin a more attractive asset for corporate treasuries.
In conclusion, Michael Saylor’s proposal for the US government to acquire a significant portion of Bitcoin’s total supply has sparked a debate on the role of Bitcoin in government reserves. With state-level efforts to incorporate Bitcoin into public reserves gaining momentum and corporate adoption on the rise, the future of Bitcoin as a strategic asset remains uncertain but promising.