MicroStrategy founder Michael Saylor has proposed the establishment of a strategic Bitcoin reserve that could generate between $16 and $81 trillion for the U.S. Treasury, potentially offering a significant solution to the national debt crisis. This initiative envisions a rapid expansion of digital capital markets from $2 trillion to a staggering $280 trillion, with a major share expected to be captured by U.S. investors.
The framework also emphasizes the implementation of standardized disclosures and industry-led compliance protocols. This strategy aims to lower issuance costs and broaden market access to an estimated 40 million businesses, a drastic increase from the current 4,000 public companies.
Notably, MicroStrategy’s recent inclusion in the Nasdaq 100, where it replaces IT firm Super Micro Computer, is anticipated to spur buying activity from index-tracking funds. The company’s market valuation is notably robust, trading at approximately twice the net asset value of its Bitcoin holdings, which has enabled MicroStrategy to issue stock above its intrinsic value, facilitating further Bitcoin acquisitions.
Saylor has emerged as a leading advocate for Bitcoin, having initiated the company’s cryptocurrency investments four years ago. Currently, MicroStrategy holds 439,000 Bitcoin, reflecting an unrealized gain of $16 billion, with its most recent acquisition on December 16, involving 15,350 coins purchased for $1.5 billion.
MicroStrategy’s bold Bitcoin strategy has propelled the software company into the Nasdaq 100 index, resulting in a market capitalization of $88 billion, despite Bitcoin holdings worth around $43 billion. In 2024 alone, the company has raised nearly $20 billion through a mix of share sales and convertible bonds, with its stock experiencing an extraordinary surge of over 500% this year.
