MicroStrategy’s Chairman Saylor urges US to swap gold reserves for bitcoin
This illustration photograph shows a coin imitation of the Bitcoin cryptocurrency arranged beside a screen displaying a trading chart, taken in Istanbul, Türkiye, on Nov. 22, 2024. (AFP Photo)
MicroStrategy’s Chairman Michael Saylor urged the U.S. government to consider offloading its gold reserves and purchasing bitcoin, as a strategy to address the nation’s $36 trillion national debt stock.
Saylor proposed that the U.S. either exchange its current gold reserves or borrow a modest sum to invest 20% to 25% in bitcoin. He argued that such a move would attract significant capital flows to the U.S. while simultaneously increasing Bitcoin’s value.
The U.S. government holds the largest national gold reserves in the world, accounting for 72% of the global total with 8,133 tonnes, and dominates international commodity trading.
Saylor shared his opinion during a live interview with economy-focused CNBC interview on Monday, which was later posted on his official X page.
My thoughts on solving the national debt, strengthening the USD, ensuring US economic leadership via a Digital Assets Framework & #Bitcoin Strategic Reserve, $MSTR's inclusion in the Nasdaq 100, & value created by our treasury operations with @SaraEisen. pic.twitter.com/3Mcu2ekGe2
— Michael Saylor⚡️ (@saylor) December 16, 2024
The software development company’s chairman emphasized that bitcoin holds more intrinsic value than gold, highlighting its potential to rise to trillions of dollars and serve as a strong hedge against inflation.
Bitcoin-centered company
Over the past four years, Saylor’s MicroStrategy pursued a bitcoin acquisition strategy valued in the billions. The company even issued convertible notes to finance its bitcoin purchases. On Monday, MicroStrategy acquired an additional 15,350 bitcoins, increasing its total holdings to 439,000 bitcoins, which are currently worth approximately $46 billion at the coin’s market value.
Saylor is known for his bold predictions about bitcoin as he previously forecasted that bitcoin’s market capitalization would skyrocket to $280 trillion, surpassing the gold market cap of $45 trillion. The current bitcoin market cap stands at $2 trillion.
Backing his projections, Saylor continues to purchase bitcoin weekly and encourages more investors and institutions to follow suit. MicroStrategy currently owns 402,100 bitcoins, valued at approximately $40 billion.
Following MicroStrategy’s inclusion in the Nasdaq 100 index—which tracks the 100 largest non-financial companies listed on the Nasdaq Exchange—bitcoin surged 4% on Monday, reaching an all-time high of $106,569. This surge was further supported by significant transactions involving at least 27,000 Bitcoins, worth $2.8 billion.
President-elect Donald Trump first introduced the idea of a Bitcoin Strategic Reserve during the Bitcoin 2024 Conference in Nashville on July 27. The proposal gained momentum with the introduction of the Bitcoin Act by Republican Senator Cynthia Lummis to the U.S. Congress on July 31. The Act proposed the establishment of a Strategic Bitcoin Reserve to purchase 1 million bitcoins over five years.
