The Strategy Behind a U.S. Bitcoin Reserve
Michael Saylor, founder of Strategy, has a grand vision for the United States. He proposes that the U.S. government should acquire up to 25% of Bitcoin’s total supply by 2035. This plan, outlined in his document “A Digital Assets Strategy to Dominate the 21st Century Global Economy,” suggests daily Bitcoin purchases for the next decade. By then, 99% of all Bitcoin will have been mined.
Saylor presented this idea at the White House Crypto Summit on March 7. He urged policymakers to adopt a “Never sell your Bitcoin” approach. According to his predictions, by 2045, the U.S. Bitcoin reserve could generate over $10 trillion annually. He sees this as a “perpetual source of prosperity” that could help ease the national debt.
Trump’s Executive Order and the Bitcoin Strategy Impact
On the same day, President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve. However, instead of buying Bitcoin directly, the reserve will be initially funded with Bitcoin seized in criminal cases. The order also requires the Treasury and Commerce departments to develop “budget-neutral strategies” to accumulate more Bitcoin without burdening taxpayers.
This announcement caused mixed reactions in the crypto market. Investors had hoped for direct purchases, which could have driven Bitcoin prices higher. Without this commitment, Bitcoin’s price faced downward pressure, triggering a short-term negative market reaction.
Bitcoin Price and Strategy’s Influence
The disappointment surrounding the U.S. Bitcoin reserve strategy coincided with a key moment for Bitcoin’s price. Bitcoin struggled to stay above the $82,000 support level, a crucial psychological and technical threshold. If Bitcoin closes the week below this price, it could lead to over $1.13 billion in Leveraged long liquidations, further increasing market volatility.
Beyond crypto-specific news, macroeconomic factors also impact Bitcoin. Analysts point to inflation reports and broader economic trends as major influences on Bitcoin’s short-term movements. A slowing economy could increase the chances of interest rate cuts, which historically benefit Bitcoin.
Saylor vs. The Market
Despite the market’s reaction, Saylor remains committed to his Bitcoin strategy. Just days before the summit, Strategy acquired another $2 billion worth of Bitcoin, bringing its total holdings to nearly 500,000 Bitcoin. This purchase was funded through a senior convertible note offering, a strategy Saylor has used before to amass Bitcoin.
While his plan is bold, it faces challenges. Some policymakers question the feasibility of holding such a massive Bitcoin reserve. Others worry about Bitcoin’s volatility and its long-term role in the financial system. Still, Saylor believes the U.S. must act fast to dominate the Bitcoin space before other nations do.
The Future of Bitcoin and the U.S. Strategy
The debate over a U.S. Bitcoin reserve is just beginning. Saylor’s vision is clear: the U.S. should secure a dominant position in the Bitcoin network before it’s too late. Trump’s executive order is a step forward, but without aggressive buying, it may not meet market expectations.
Bitcoin, inflation, and global economic trends will continue to shape its price in the coming months. If policymakers take Saylor’s advice seriously and implement a structured Bitcoin acquisition strategy, the U.S. could position itself as a leader in the digital asset space. Until then, investors and analysts will closely watch both government actions and market movements to see if this vision becomes reality.
