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Cryptocurrency News Articles
MicroStrategy Founder Michael Saylor Pitches Plan to Establish a Strategic Bitcoin Reserve for the U.S. Treasury
Dec 21, 2024 at 09:37 pm
The proposal suggests that such a Bitcoin (BTC) reserve could generate between $16 and $81 trillion in wealth for the U.S. Treasury
MicroStrategy founder Michael Saylor shared Friday a proposal for setting up a strategic Bitcoin reserve.
The proposal claims that such a Bitcoin (BTC) reserve could generate between $16 and $81 trillion in wealth for the U.S. Treasury, potentially offering a way to offset the national debt. The proposal projects digital capital markets growth from $2 trillion to $280 trillion, with U.S. investors capturing the majority stake.
A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy—empowering millions of businesses, driving growth, and creating trillions in value.
The framework advocates for practical compliance measures. These include standardized disclosures and industry-led compliance protocols. At the same time, it aims to reduce issuance costs and expand market access to 40 million businesses from the current 4,000 public companies.
MicroStrategy’s addition to the Nasdaq 100, replacing IT firm Super Micro Computer, is set to trigger buying activity from index-tracking funds.
The company’s success is highlighted by its market position, trading at approximately double the net asset value of its Bitcoin holdings. This premium allows MicroStrategy to continue issuing stock above its intrinsic value, enabling further Bitcoin purchases.
The recent developments validate the Bitcoin-focused strategy championed by Saylor. Saylor has emerged as one of the most prominent advocates for Bitcoin since initiating the company’s cryptocurrency investments four years ago.
According to the data from Saylortracker, the company now holds 439,000 Bitcoin, showing an unrealized gain of $16 billion. MicroStrategy’s last BTC purchase was on Dec. 16, when the company bought 15,350 coins for $1.5 billion.
MicroStrategy’s Bitcoin strategy has propelled the software company into the Nasdaq 100 index, with its market capitalization soaring to $88 billion despite holding Bitcoin valued at around $43 billion.
MicroStrategy managed to raise nearly $20 billion from investors in 2024 through a combination of share sales and convertible bonds. The company’s stock has witnessed a surge of over 500% this year.
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