MicroStrategy founder Michael Saylor on Friday shared a proposal for establishing a strategic Bitcoin reserve.
The proposal suggests that such Bitcoin (BTC) reserve could generate between $16 and $81 trillion in wealth for the US Treasury, possibly offering a path to balance the national debt. The proposal projects the growth of digital capital markets from $2 trillion to $280 trillion, with US investors capturing the majority.
The framework advocates practical compliance measures. These include standard disclosures and industry-driven compliance protocols. At the same time, it aims to reduce output 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 company Super Micro Computer, is expected to spur buying activity from index-tracking funds.
The company's success is reflected in its market position, trading at roughly double the net asset value of its Bitcoin holdings. This price allows MicroStrategy to continue issuing stock above its intrinsic value, allowing for more Bitcoin purchases.
The recent developments confirm the Bitcoin-based strategy that Saylor is promoting. Saylor has emerged as one of the most prominent proponents of Bitcoin since he started the company's cryptocurrency investments four years ago.
According to the data from Saylortrackerthe company now has 439,000 Bitcoin, with an undisclosed profit of $16 billion. MicroStrategy's last BTC purchase was on December 16, when the company bought 15,350 coins for $1.5 billion.
MicroStrategy's Bitcoin strategy has pushed the software company into the Nasdaq 100 index, with a market capitalization rising to $88 billion despite keeping Bitcoin worth around $ 43 billion.
MicroStrategy has successfully raised nearly $20 billion from investors in 2024 through a combination of share sales and convertible bonds. The company's stock has seen an increase of more than 500% this year.
