DailySun
Michael Saylor, the founder of MicroStrategy, proposed on Friday a plan for creating a strategic Bitcoin reserve.
This proposal indicates that a Bitcoin (BTC) reserve could potentially generate between $16 trillion and $81 trillion in wealth for the U.S. Treasury, providing a way to address the national debt. The initiative forecasts growth in digital capital markets from $2 trillion to $280 trillion, with U.S. investors expected to capture the largest share.
The framework supports practical compliance strategies, including standardized disclosures and compliance initiatives led by the industry. It also aims to lower issuance costs and broaden market access to 40 million businesses, up from the current 4,000 public companies.
MicroStrategy’s entry into the Nasdaq 100, taking the place of IT firm Super Micro Computer, is anticipated to spur buying from index-tracking funds.
The company’s performance is reflected in its market position, trading at about twice the net asset value of its Bitcoin holdings, which enables MicroStrategy to issue stocks above intrinsic value and facilitate additional Bitcoin acquisitions.
These recent developments further validate the Bitcoin-centric strategy promoted by Saylor, who has emerged as one of the leading proponents of Bitcoin since the company began its cryptocurrency investments four years ago.
According to Saylortracker, the company currently holds 439,000 Bitcoin, resulting in an unrealized gain of $16 billion. MicroStrategy’s most recent BTC purchase occurred on December 16, when it acquired 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 skyrocketing to $88 billion, despite its Bitcoin holdings being valued at approximately $43 billion.
In 2024, MicroStrategy successfully raised nearly $20 billion from investors through a blend of share sales and convertible bonds, with the company’s stock experiencing a remarkable surge of over 500% this year.
