Michael Saylor Urges US Government to Buy 25% of Bitcoin Supply

This will make the country a dominant force in the digital asset economy. The proposal was presented at the White House Crypto Summit. Meanwhile, Utah’s attempt to become the first US state with a Bitcoin reserve fell short, though multiple states continue pushing similar bills. There is still ample opportunity for the US to stock up on Bitcoin as only 4% of the global population owns BTC, and the US leads in ownership. However, challenges like volatility and misconceptions are still some of the many hurdles to overcome to reach global Bitcoin adoption. 

Saylor’s Bitcoin Strategy Could Reshape US Economic Policy

Michael Saylor, the founder of Strategy, put forward an ambitious proposal for the United States government to buy up to 25% of Bitcoin’s total supply over the next decade. In a document titled “A Digital Assets Strategy to Dominate the 21st Century Global Economy,” Saylor outlined a plan for the government to accumulate between 5% and 25% of the Bitcoin network through a programmatic daily purchase strategy running from 2025 to 2035. By the end of this period, 99% of all Bitcoin will have been issued, which will position the United States as a dominant force in the digital asset economy.

Saylor presented this proposal to US President Donald Trump, government executives, and key global crypto leaders during the White House Crypto Summit on March 7. Central to his argument was the recommendation that the government should adopt a strict “Never sell your Bitcoin” policy. He also predicted that by 2045, the Strategic Bitcoin Reserve could generate more than $10 trillion annually. He suggested that this reserve could become a perpetual economic engine for the nation, with potential earnings between $16 trillion and $81 trillion flowing into the US Treasury in the coming decades. This could help a lot in alleviating the country’s massive national debt burden.

Part of Saylor’s proposal

Earlier that day, Trump signed an executive order to establish a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” This initiative will be initially funded using Bitcoin and other digital assets that were seized in criminal cases. While the order did not explicitly outline an immediate purchasing strategy, it directed the Treasury and Commerce secretaries to develop “budget-neutral strategies” for accumulating more Bitcoin.

Saylor’s vision of a 25% Bitcoin supply allocation is much higher than previous proposals, including the 2024 Bitcoin Act that was introduced by Wyoming Senator Cynthia Lummis. Her bill suggested a government purchase of 1 million BTC, or approximately 5% of the total supply. If the United States were to follow Saylor’s maximum recommendation, it will hold 5.25 million BTC, which is a level of dominance in the Bitcoin market that no other entity could match.

Utah Passes Bitcoin Bill Without Important Provision

Utah’s Bitcoin bill recently successfully passed the state Senate but without its most ambitious provision—a clause that would have made Utah the first US state to establish its own Bitcoin reserve. The HB230 “Blockchain and Digital Innovation Amendments” bill now moves to Governor Spencer Cox for approval, and focuses on basic digital asset protections for Utah residents, ensuring their right to custody Bitcoin, participate in mining, run nodes, and engage in staking.

Initially, the bill included a provision that would have allowed the state treasurer to invest up to 5% of digital assets with a market cap exceeding $500 billion over the past year in five state accounts. Given Bitcoin’s dominance, it was the only asset that qualified under these criteria. 

However, while the clause made it through the second reading, it was ultimately removed before the final vote. The Utah House later agreed to the amendment in a 52-19-4 vote. Senator Kirk A. Cullimore, one of the bill’s sponsors, explained that concerns about early adoption and the implications of such a policy led to its removal.

Up until the last minute, Utah seemed poised to make history as the first state to adopt a Bitcoin reserve. On Feb. 2, Dennis Porter, CEO of the Satoshi Action Fund, predicted the bill’s passage with the reserve provision intact. With Utah now out of the running, Arizona and Texas are leading the way, with their respective Bitcoin reserve bills progressing through legislative hurdles. Data from Bitcoin Laws indicates that both states have successfully pushed their bills through Senate committees, with final floor votes pending.

(Source: Bitcoin Laws)

Across the US, there has been a surge in legislative efforts to establish state Bitcoin reserves. Out of the 31 Bitcoin reserve-related bills that were introduced, 25 are still active. States like Illinois, Iowa, Kentucky, Maryland, Massachusetts, New Hampshire, New Mexico, North Dakota, Ohio, and Oklahoma continue to push their proposals forward. However, similar efforts have failed in Pennsylvania, Montana, Kentucky, and North Dakota.

While Utah’s attempt to lead in Bitcoin adoption at the state level fell short, the broader trend suggests that the US government and multiple states are increasingly moving toward formal Bitcoin holdings.

Bitcoin Adoption Still in Early Stages

It seems like the floor is wide open for the US to accumulate as much Bitcoin as possible on a state and Government level as only 4% of the global population currently holds Bitcoin, with the highest concentration of ownership in the United States. In the US, an estimated 14% of individuals own BTC. 

According to a research report from River, a Bitcoin financial services company, North America has the highest adoption rate among both individuals and institutions, while Africa lags behind at just 1.6%. The data suggests that Bitcoin adoption tends to be higher in developed regions compared to developing ones. River also estimates that Bitcoin has only reached 3% of its total adoption potential, which suggests that the digital asset is still in its early stages of global adoption.

(Source: River)

River arrived at the 3% figure by assessing Bitcoin’s total addressable market, which includes governments, corporations, and institutions, currently at only 1%. The calculation also factored in institutional underallocation and individual ownership rates, which revealed the vast room for Bitcoin’s growth. While Bitcoin has made a lot of progress since its origins in the cypherpunk movement, even achieving the status of a US government reserve asset, several obstacles are still on the path to mass adoption.

One of the larger challenges is the lack of financial and technical education, which fuels widespread misconceptions about Bitcoin. This includes beliefs that it is a scam or a Ponzi scheme. Additionally, Bitcoin’s notorious volatility is both a benefit and a drawback, as it attracts traders but also discourages those who look for a more stable medium of exchange or store of value. This volatility particularly impacts people in developing economies, many of whom have opted for US dollar stablecoins as a safer digital store of value because of their lower transaction fees and relative stability compared to Bitcoin.

(Source: River)

During the recent White House Crypto Summit on March 7, US Treasury Secretary Scott Bessent announced that the United States will leverage stablecoins to maintain dollar hegemony and safeguard its status as the world’s dominant reserve currency.