Michael Saylor Calls on US to Acquire 20% of Bitcoin for Economic Power
By: Eliza Bennet
Michael Saylor, co-founder of major analytics firm Strategy, has made a bold proposition for the United States government: to acquire up to 20% of Bitcoin's total supply. Speaking at the Conservative Political Action Conference (CPAC), Saylor argued that such an endeavor could fortify the US dollar and potentially offset the national debt. He emphasized that if the US does not take action, other nations like China, Russia, or those in Europe might seize this opportunity, which could lead to significant geopolitical advantages for them.
Saylor suggested acquiring between 4 to 6 million BTC, which he believes could be sufficient to mitigate the entire US national debt. The method he proposed involves leveraging the government’s capacity to issue debt, suggesting that the Bitcoin acquisition could potentially be executed at no cost to the nation. While Saylor didn’t elaborate on the specifics of this approach or its economic implications, the idea has sparked discussions among lawmakers, economists, and crypto enthusiasts alike.
The momentum toward Bitcoin integration into state reserves is already underway, as evidenced by initiatives in multiple US states such as Texas, Utah, Pennsylvania, and Wyoming. These states have either proposed or advanced legislation for state-controlled Bitcoin reserves, with several allowing a percentage of public funds to be allocated to Bitcoin. Notably, Utah's and Arizona's legislative committees have recently moved forward with relevant bills, showing marked progress in this domain. President Trump’s administration has also been proactive, forming a federal working group to assess the feasibility of a national Bitcoin reserve strategy.
While the interest in utilizing Bitcoin as a government reserve is palpable, it is not without its detractors. Economic experts and institutions like the European Central Bank (ECB) hold reservations about incorporating Bitcoin into national treasuries. Despite these concerns, corporate adoption of Bitcoin continues to rise unabated. Publicly traded companies now hold approximately 1 million BTC, marking a 31% rise from the previous year. Strategy, having recently rebranded from MicroStrategy, continues to lead the charge by concentrating its resources on Bitcoin accumulation and holding upwards of 478,740 BTC as of February.
This corporate trend is partially fueled by new accounting regulations that enable companies to recognize unrealized gains in Bitcoin as profits rather than losses. This accounting shift makes Bitcoin a substantially more attractive asset for corporate treasuries and is likely to further drive its adoption among businesses. As the debate over Bitcoin's role in both public reserves and corporate strategies intensifies, its potential to shape financial landscapes becomes increasingly apparent.
