Michael Saylor Proposes US Government Acquire 25% of Bitcoin's Supply

YEREVAN (CoinChapter.com) — Michael Saylor, founder of Strategy, has proposed that the United States government acquire up to 25% of Bitcoin's total supply

"A Digital Assets Strategy to Dominate the 21st Century Global Economy" is a document that proposes an unconventional yet intriguing strategy for the United States government to integrate and dominate the global digital economy. The report's primary focus is on Bitcoin, advocating for the creation of a Strategic Bitcoin Reserve and a Digital Asset Stockpile to strengthen the U.S. financial system and ensure long-term economic stability.

The proposal, presented by Michael Saylor, founder of Strategy, at the White House Crypto Summit on March 7, 2024, to President Donald Trump, government officials, and crypto industry leaders, suggests a unique and potentially impactful initiative.

The proposal suggests that the government could acquire Bitcoin daily and hold it in a Strategic Bitcoin Reserve. According to the report, this approach, executed over a period of 10 years, would allow the Treasury to generate $16 trillion to $81 trillion in revenue from Bitcoin holdings.

The report proposes a consistent strategy of daily Bitcoin purchases, beginning in 2025 and continuing until 2035, when 99% of all Bitcoin would be issued. The optimal daily purchase amount would be determined based on market conditions and the Treasury's budgetary capacity.

The report also highlights the potential for the U.S. to generate revenue from Bitcoin transactions, which would be used to fund government programs and initiatives. For instance, if the Treasury allocated $1 billion daily for Bitcoin purchases over 10 years, it could acquire 5.25 million BTC, leading to a potential revenue stream of $250 billion to $500 billion annually.

Moreover, the report emphasizes the importance of the government holding and using its Bitcoin holdings wisely, considering the long-term economic implications.

The report concludes by stating that the U.S. has a unique opportunity to seize the initiative in the emerging domain of digital assets. By implementing the proposed strategy, the government can ensure the U.S.'s preeminent role in the 21st-century global economy.

On the same day, President Trump signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile. The order directs government agencies to manage Bitcoin seized in criminal cases and create a budget-neutral strategy for acquiring more Bitcoin without additional taxpayer costs.

The president's executive order does not immediately allocate funds for Bitcoin purchases but instructs the Treasury and Commerce departments to explore methods of acquisition in cooperation with the Federal Reserve and other relevant agencies.

The report's proposal for the U.S. government to hold 25% of Bitcoin's total supply surpasses previous plans. In July 2024, Wyoming Senator Cynthia Lummis introduced the Bitcoin Act, recommending the U.S. acquire 1 million BTC, or 5% of Bitcoin's supply.

If the government follows the report's strategy, it would control 5.25 million BTC, significantly increasing its influence over the Bitcoin market.

Strategy continues to add to its Bitcoin holdings and recently made a significant purchase of the cryptocurrency. In a filing with the Securities and Exchange Commission (SEC) on February 24, the company disclosed that it had acquired an additional $2 billion worth of Bitcoin.

The purchase follows a $2 billion senior convertible note offering that Strategy completed earlier this month. The company is continuing to expand its Bitcoin reserves and is seeking new avenues for capital generation to support its investments in the cryptocurrency.

This aligns with the firm's long-term strategy, as CEO Michael Saylor has been a vocal advocate for Bitcoin and believes it is a key asset in the evolving digital economy.