Strategic Bitcoin Reserve Has Precedent in Other Big U.S. Government Purchases: Michael Saylor

As a researcher with a keen interest in finance and technology, I find myself intrigued by the proposition of the U.S. government acquiring Bitcoin. Michael Saylor’s assertion that this move could be the “greatest deal of the 21st century” is captivating, to say the least.

While the suggestion for the U.S. to accumulate Bitcoin (BTC) hasn’t been implemented yet, Michael Saylor believes this idea is not just plausible but inevitable.

During the Bitcoin 2024 conference in July, Donald Trump, who was running for president at the time, made a promise to the crowd of cryptocurrency enthusiasts that he would keep the approximately 200,000 bitcoins owned by the U.S. government. In simpler terms, he pledged to retain these digital coins if elected.

Immediately following this, Senator Cynthia Lummis (R-Wyo.) took an additional step by proposing legislation to gradually increase our national reserves, aiming to own approximately one million digital tokens within a span of five years.

During a talk at the Cantor Crypto, Digital Assets & AI Infrastructure Conference in Miami on Thursday, Saylor expressed that this could potentially be the most significant deal of the 21st century.

The MicroStrategy executive chairman stated, “The optimal method to safeguard the dollar is by eliminating debt and amassing wealth.” He further suggested, “Another effective way to secure the dollar is to ensure that if anyone contemplates an alternative financial asset other than treasury bills, you possess it.” Bitcoin, according to Saylor, is that asset.

The idea of the U.S. buying strategic assets isn’t new, reminded Saylor, pointing to the acquisition of Manhattan, the Louisiana Purchase and the buying of California and Alaska in the 19th century. All resulted in multi-trillion dollar returns for the county, he said. There have also been several other strategic purchases made in the history of the nation like gold, oil, grain and helium, noted Saylor.

“The concept is straightforward and has been applied before – identify where the worth lies, then buy it at a low price and keep it. This strategy is common among nations… In essence, Bitcoin embodies the future growth potential for the United States. I believe both the Trump administration and Senator Lummis comprehend this idea, which is why I anticipate its implementation.

Should Sen. Lummis’ proposed bill get approved in its current form – with a stronger likelihood given the anticipated Republican control of both the Senate and House next year – estimates suggest that the U.S. could potentially reap a $16 trillion advantage from purchasing one million Bitcoins, as per Saylor’s assessment.

Saylor also described a “Trump Max” scenario in which the country purchases four million bitcoin. That, said Saylor, might result in a return of $81 trillion.

The Trump Max is the “rational way,” Saylor concluded.