Michael Saylor, the founder of MicroStrategy, proposed on Friday the creation of a strategic Bitcoin reserve.

This proposal indicates that a Bitcoin (BTC) reserve could potentially generate between $16 and $81 trillion in wealth for the U.S. Treasury, offering a viable route to mitigate national debt. The vision anticipates growth of digital capital markets from $2 trillion to $280 trillion, with U.S. investors likely to hold the majority share.

The proposed framework emphasizes the importance of practical compliance measures, such as standardized disclosures and industry-led protocols. This approach also seeks to lower issuance costs and expand market access to an estimated 40 million businesses, up from the current 4,000 public companies.

MicroStrategy’s recent inclusion in the Nasdaq 100, replacing IT firm Super Micro Computer, is set to trigger increased buying activity from index-tracking funds.

The company’s favorable market position is illustrated by its trading rate, approximately double the net asset value of its Bitcoin holdings. This premium enables MicroStrategy to continue issuing stock above its intrinsic value, thereby facilitating additional Bitcoin acquisitions.

The recent events affirm the Bitcoin-centric strategy advocated by Saylor, who has become a leading proponent of Bitcoin since initiating the company’s investments in cryptocurrency four years ago.

According to data from Saylortracker, the company currently holds 439,000 Bitcoin, with an unrealized gain of $16 billion. The latest BTC acquisition by MicroStrategy occurred on Dec. 16, when it purchased 15,350 coins for $1.5 billion.

By embracing this Bitcoin strategy, MicroStrategy has achieved entry into the Nasdaq 100 index, with its market capitalization reaching $88 billion, despite its Bitcoin holdings being valued at around $43 billion.

In 2024, MicroStrategy has successfully raised almost $20 billion from investors, utilizing a mix of share sales and convertible bonds. The company’s stock has surged over 500% this year.