Michael Saylor, the leader of Strategy, Wants the US to Purchase 20 % of the Bitcoin Supply.

Michael Saylor, a co-founder of Strategy, suggested that the United States was “freely” purchase 20 % of the Bitcoin supply and that holding 4 to 6 million BTC do “pay off the entire national debt.”

Appearing at the annual CPAC event, Saylor spoke in favor of a proper Bitcoin stockpile, arguing that” the money would improve” if the U. S. provincial government created quite a stockpile.

He even warned that not pursuing such a policy would risk the U. S. falling behind other countries, claiming that” there’s only space for one nation-state to get up 20 % of the network”.

He said, “you wouldn’t want the Saudis buying it first, or the Russians, or the Foreign or the Europeans”.

Saylor’s notes come as several U.S. states are getting closer to enforcing their own Cryptocurrency reserves, with one bill in Utah just receiving a positive recommendation from the country’s Senate Revenue and Taxation Committee.

Additionally, the remarks come a month after Donald Trump ratified a resolution to create a working group to consider the possibility of a national Bitcoin reserve.

Saylor emphasized that the U. S. government could get up 20 % of Bitcoin’s supply “”, with his comment about buying BTC” for completely” apparently a reference to the U. S. government’s ability to challenge an endless supply of dollars via Treasuries.

Currently, the U. S. government holds around 183, 422 BTC ( nearly 1 % of the cryptocurrency’s supply ), while the British government owns 61, 245 BTC ( and the German government sold around$ 2.8 billion in BTC last year ).

Meanwhile, Saylor’s firm – the recently rebranded Strategy – holds over 430, 000 BTC, giving it the largest Bitcoin holdings of any publicly traded company anywhere in the world.

Saylor had previously suggested a Bitcoin reserve plan to the board of directors of Microsoft, suggesting in a presentation from December that the tech giant could generate as much as$ 5 trillion in shareholder value ( by 2034 ) by accumulating BTC.

While some lawmakers in the U.S. and elsewhere have made comments about BTC reserves, some observers are skeptical that such comments will ever become a meaningful reality. So far, neither Microsoft nor any other Big Tech firm have taken Saylor’s advice.

Asked whether he agrees with Saylor’s claims that the U. S. could easily buy up 20 % of all Bitcoin, and that it would benefit the U. S. dollar, longtime crypto skeptic and author David Gerard takes a much less bullish stance.

There is no compelling reason why either of these statements would be true or how the United States would profit from Bitcoin, he tells . Saylor says,” Saylor is advocating for U.S. government price support for Bitcoin, and that’s all.”

Other, more sympathetic voices have also begun to question whether or not a prudent national Bitcoin reserve would ever exist.

Christian Catalini, the founder of the MIT Cryptoeconomics Lab, made an argument in a blog post for the OMFIF think tank on Wednesday that Bitcoin does not meet the requirements for a reserve asset.

He claims that” strategic reserves are intended to guarantee stability and provide immediate access in a crisis.” ” Countries store dollars or oil because they need to pay off their debts, settle cross-border debts, and maintain vital systems in place when supply chains collapse.”

Perhaps more fatally, he also argues against Saylor by suggesting that stockpiling Bitcoin would harm the U. S. dollar’s status as the world’s reserve currency.

” If the U.S. started amassing Bitcoin on a large scale, it might be seen as a hedge against the dollar itself,” he says, raising alarms and opening up the door for rivals like China or Russia to claim that the country no longer trusts its own currency.

These worries have an impact on the recent advocacy of BTC reserves by advocates like Saylor and Strategy, which continues to accumulate Bitcoin regularly.

And Saylor’s comments from yesterday, according to David Gerard, are more about establishing credibility for his company’s current business strategy than trying to find a big buyer for its own Bitcoin reserves.

He tells ,” Microstrategy’s deal seems to be leveraging Bitcoin into a proxy for dollars so insiders can sell company stock in scheduled sales”.

Last month, Strategy’s shareholders voted to increase the company’s Class A shares from 330 million to 10.3 billion, coming as part of efforts to raise$ 46 billion by selling a mix of equities and bonds.

Although Gerard warns that such an alleged strategy doesn’t always work out, it has precedent in the cryptocurrency industry.

He says,” The same process happened with Bitcoin miners in the 2021-2022 bubble: the companies would talk Bitcoin slogans, but if you looked at the flows of cash it was about insiders making money from]stock ] investors who should have known better, with the exit being bankruptcy or at the least restructuring”.