Bitcoin as national asset may generate $81 trillion

MicroStrategy founder Michael Saylor shared a recommendation for creating a strategic Bitcoin reserve on Friday.

The proposal suggests that such a Bitcoin (BTC) reserve could create between $16 trillion and $81 trillion in wealth for the US Treasury and potentially offer a way to offset the national debt. The proposal envisages digital capital markets growing from $2 trillion to $280 trillion, with US investors taking a majority stake.

A strategic digital asset policy could strengthen the U.S. dollar, neutralize the national debt, and position America as the global leader in the 21st century digital economy; It can power millions of businesses, accelerate growth and create trillions in value. https://t.co/7n7jQqPkf1

— Michael Saylor⚡️ (@saylor) December 20, 2024

The framework advocates practical compliance measures. These include standardized disclosures and industry-led compliance protocols. It also aims to reduce issuance costs and expand market access to 40 million businesses from the current 4,000 publicly traded companies.

MicroStrategy’s addition to the Nasdaq 100 and its replacement for IT firm Super Micro Computer is expected to trigger buying activity from index-tracking funds.

The company’s success is seen from its market position, with Bitcoin assets trading at nearly twice its net asset value. This premium allows MicroStrategy to continue issuing shares above their intrinsic value, enabling the purchase of more Bitcoin.

Recent developments confirm the Bitcoin-focused strategy advocated by Saylor. Saylor has emerged as one of Bitcoin’s most prominent advocates since the company began investing in the cryptocurrency four years ago.

According to data from Saylortracker, the company currently owns 439,000 Bitcoins and has $16 billion in unrealized gains. MicroStrategy’s last BTC purchase took place on December 16, when the company purchased 15,350 tokens for $1.5 billion.

MicroStrategy’s Bitcoin strategy has propelled the software company into the Nasdaq 100 index; Although Bitcoin’s value is approximately $43 billion, its market value has increased to $88 billion.

MicroStrategy successfully raised approximately $20 billion from investors in 2024 through a combination of share sales and convertible bonds. The company’s shares have witnessed a rise of over 500% this year.