Michael Saylor Calls on U.S. Government to Purchase 25% of BTC Supply
Key Takeaways:
- Michael Saylor proposes the U.S. government should acquire 25% of the total Bitcoin supply.
- They’d like to get trillions of dollars in revenue so they can fund the future of America.
- Critics warn of volatility, security risks and political backlash.
Michael Saylor, a key voice in the Bitcoin community, whose company has been vocally acquiring Bitcoin since 2020 as Executive Chairman (previously MicroStrategy), has sparked intense debate with a bold proposition that the United States government ought to lock up a jaw-dropping 25% of the total supply of Bitcoin (BTC) over the coming decade. Unveiled at the White House Crypto Summit on March 7, 2025, this bold plan has ignited conversations about the future of Bitcoin and the proper scope of government intervention in the growing cryptocurrency sector. Supporters argue that this could be a strategic move to ensure the U.S. remains at the forefront of financial innovation, while skeptics worry about the implications of government-controlled digital assets.
What Is Saylor’s Vision About?
Saylor’s plan, which he laid out in his document “A Digital Assets Strategy to Dominate the 21st Century Global Economy,” proposes that the U.S. government “acquire 5-25% of the Bitcoin network in trust for the nation through consistent, programmatic daily purchases between 2025 and 2035, when 99% of all BTC will have been issued.” This Saylor X post can also be viewed at:
I shared this today at the White House Digital Assets Summit. https://t.co/cmOXdDC9pd
— Michael Saylor
(@saylor) March 7, 2025
Saylor firmly believes in a “Never Sell Your Bitcoin” paradigm and what will come out by 2045 is a Strategic Bitcoin Reserve that earns more than 10 trillion dollars a year, ensuring long-term financial benefits for the American people. He envisions Bitcoin becoming a key financial instrument for national reserves, similar to gold, but with even greater potential for appreciation and liquidity. Saylor estimates this reserve could contribute between $16 trillion and $81 trillion to the U.S. Treasury by 2045, potentially alleviating the national debt. This projection, if realized, could redefine how governments manage their financial reserves and approach long-term wealth preservation.
How Does This Work Compared to Other Bitcoin Proposals?
Saylor’s vision surpasses previous Bitcoin acquisition proposals. For example, once upon a time, there was the 2024 Bitcoin Act of Wyoming Senator Cynthia Lummis (July 2024), which sought to purchase 1 million BTC (about 5% of the total supply). An effective 25% stake would amount to a staggering 5.25 million BTC. Such dominance in the Bitcoin network would also raise ethical and economic questions about the concentration of digital assets in government hands. This would give the U.S. government unprecedented influence over the Bitcoin network, potentially shaping global cryptocurrency policies and regulations.
Proposal | BTC Quantity | % of Total Supply | Proponent |
Lummis’s Bitcoin Act | 1 Million BTC | 5% | Senator Lummis |
Saylor’s Proposal | 5.25 Million BTC | 25% | Michael Saylor |
Table: Comparing Bitcoin Acquisition Proposals
How Will the U.S. Economy Be Affected?
Saylor’s plan, if enacted, could have serious consequences for the US economy:
- Mining Benefits & More Revenue for the Government: According to Saylor, a reserve can generate trillions of dollars in future revenue.
- Increased Financial Stability: Bitcoin could serve as reserve asset enabling the U.S. to protect itself from inflation and economic recession.
- Increased Innovation: Government participation in the Bitcoin market has the potential to motivate innovation and development in the digital asset space. By investing in Bitcoin, the U.S. could also stimulate research into blockchain technology, cybersecurity, and digital finance, fostering advancements in both the private and public sectors.
The Economic and Political Implications
This is not just a straightforward money transfer. Of course, if US Government holds a considerable amount of Bitcoin, it can have a significant impact on the value and stability of cryptocurrency. It could also cement the U.S.’s status as a digital asset leader. This move could position the U.S. as a leader in digital assets.
Understanding the Risks and Challenges
Such an ambitious plan comes with its own set of challenges:
- Price Volatility: Bitcoin’s well-known volatility could cause drastic changes in the value of the reserve.
- Security Risks: Vulnerabilities associated with the storage of large amounts of Bitcoin must be addressed through stringent security protocols to protect against hacking and theft.
- Political Opposition: Some investors may be cautious of government investments in Bitcoin, due to a lack of faith in cryptocurrency. There is concern that such a move could lead to increased regulatory scrutiny, potentially stifling private sector growth and innovation in the crypto space. Others may view it as the US losing confidence in their dollar and the conventional financial market.
Read More: Trump Administration Seeks to Build Largest U.S. Bitcoin Reserve
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