Michael Saylor Suggests Washington Own a Fifth of All Bitcoin To Offset Trillions in National Debt

• The U.S. could offset up to 20% of its national debt by 2049 if it acquires 1 million Bitcoins over the next five years.
• Strategy is the largest corporate holder of Bitcoin in the world, with 478,740 BTC worth $47.2 billion.
• Michael Saylor doesn’t want to see other cryptocurrencies included in a U.S. strategic reserve.

Bitcoin (BTC) may prove to be a valuable lifeline for the American economy as Strategy (formerly MicroStrategy) boss Michael Saylor posits that only one country could purchase 20% of all Bitcoin, and that’s the U.S.

With politicians tabling plans to purchase 1 million BTC over the next five years and a woeful national debt of $36 trillion, Satoshi’s curious cypherpunk invention could help balance the nation’s historically bad balance sheet.

Bitcoin Strategic Reserve

Speaking at the Conservative Political Action Conference in Washington, D.C., Bitcoin bull Saylor suggested that the U.S. should stock up on 20% of Bitcoin’s total supply. Outlining the reasoning for this view, he explains:

“The dollar would strengthen, the nation would be enriched, and if you own four to six million BTC, you are going to pay off the national debt.”

Ever the BTC maximalist, Saylor rejected notions of including cryptocurrencies other than BTC in a U.S. strategic reserve.

With a supply of 21 million, the U.S. would acquire a whopping 4.2 million Bitcoin, which at today’s prices is worth $413.9 billion.

As per VanEck, the U.S. national debt currently stands at $36 trillion and could be as high as $116 trillion by 2049.

If the U.S. purchased 1 million BTC at $100,000 with a compound annual growth rate (CAGR) of 25%—which is around 10% lower than its average in the past 5 years—the U.S. BTC reserve could be worth an astonishing $21 trillion by 2049.

If the U.S. takes an aggressive Saylor-like approach and acquires 4 million BTC by 2049, growing that same conservative 25% CAGR, its Bitcoin treasury reserve could be worth $85 trillion, which would cover over 70% of its national debt.

Offsetting National Debt

Bitcoin’s historical price rise throughout 2024, notably following the galvanizing launch of U.S. spot BTC exchange-traded funds (ETFs), gave further rise to the pro-crypto movement emerging in the halls of Congress.

That year, proposals to put BTC on the government’s balance sheet were sounded by Cynthia Lummis with the BITCOIN Act and echoed through campaign trail pledges by Donald Trump, who also called to establish a national Bitcoin strategic reserve.

The BITCOIN Act would see the U.S. purchase 1 million BTC, or 5% of the total supply, over the course of five years. It’s a far cry away from Saylor’s 4.2 million BTC suggestion, but it would work to serve the same purpose, reduce the national debt in the long term, and position the U.S. as a global leader in Bitcoin.

Ultimately, whether the U.S. secures 1 million Bitcoin to offset a fifth of its national debt or acquires a fifth of all Bitcoin to squash it almost completely, its effect could be profound.

Furthermore, this assumes that the 25% CAGR will remain in effect for the next 20 years. If BTC were to overperform, the humble 1 million BTC plan could see the U.S. handle its debt with plenty of change to spare.