Bitcoin's market cap will explode to $200T, Michael Saylor predicts

Michael Saylor, executive chairman of MicroStrategy (Nasdaq: MSTR), now rebranded as Strategy, shared his outlook on the U.S. strategic crypto reserve and bitcoin growth

Donald Trump has proposed creating a U.S. crypto reserve that would include major digital currencies such as bitcoin, ether, XRP, solana, and cardano.

The proposal, which was shared on his social media platform, Truth Social, on Friday, aims to integrate the crypto assets into the U.S. economic system.

Trump's suggestion comes as the cryptocurrency industry faces increasing scrutiny from regulators and lawmakers. The U.S. Securities and Exchange Commission (SEC) has been cracking down on crypto exchanges and issuers of digital tokens, while members of Congress are debating legislation to create a comprehensive framework for the industry.

The presidential candidate, known for his bold economic claims and unconventional thinking, proposes allocating 10 percent of the Bitcoin network to the U.S. government, which he says will help reduce the national debt.

"I will be announcing a major policy on how to handle the "splendid" Bitcoin and other cryptocurrency assets for the good of the United States, to reduce the National Debt and to create RIPE Economic Value in the interview tonight on MSL," Trump wrote in a post on Friday.

He added: "This will be a splendid announcement, with great numbers, that will pour incredible amounts of capital into the U.S., and at the same time, reduce the National Debt. A win-win!"

Trump's plan to include ether, XRP, solana, and cardano in the crypto reserve reflects a more liberal economic policy, which he says is his right as the president of the United States.

"It’s his prerogative. It’s his right. He’s the president of the United States. He can do what he wants. He’s not running for office. He’s got a mandate from the American people to do what he thinks is best for the American people. And I think it’s worth a hundred trillion dollars to the United States and ultimately there’s four different assets that people need to come to grips with," Saylor said.

These assets, according to the Microstrategy executive chairman, are digital commodities like bitcoin, stablecoins backed by fiat, digital securities tied to stocks and bonds, and utility-based digital tokens.

"If you get a good digital asset policy in the United States, it’s going to drive four hundred trillion dollars of economic growth and innovation in the next fifty years," Saylor added.

The billionaire businessman has been a vocal supporter of bitcoin, and his company, Microstrategy, has invested heavily in the cryptocurrency.

Microstrategy has amassed nearly 500,000 BTC, which it began buying in March 2020 during the early stages of the COVID-19 pandemic.

"We started buying in March of 2020 when the pandemic hit and the stock market crashed. We had $250 million to invest and we were looking for an asset that could out-perform the stock market in a down market and hold up well in an up market," Saylor told interviewers at the time.

Since then, Microstrategy has continued to purchase BTC and expand its bitcoin holdings, while also pivoting its business model to focus on blockchain technology and digital assets.

Earlier this year, Microstrategy completed a $1 billion bitcoin-linked bond offering, which was the largest corporate bond issuance in 2023.

The company plans to use the net proceeds from the offering to fund additional bitcoin acquisitions and general corporate purposes.

"We are pleased to announce the successful pricing of this landmark bond offering, which is a testament to the innovative strategy and financial strength of Strategy," said Saylor.

The bonds will mature in 2028 and bear interest at a rate of 6.75 percent per year, payable semi-annually in arrears, commencing on September 30, 2023.

The bonds will be secured by a pledge of substantially all of the outstanding shares of common stock of Strategy to a subsidiary of a bank.

The offering was oversubscribed, with initial commitments of over $3 billion, demonstrating strong investor demand for the opportunity to invest in Strategy’s bitcoin strategy.

The company’s bitcoin holdings have become a significant point of focus for investors, who are interested in Strategy’s unique approach to investing in the cryptocurrency market.

"We believe that this offering will provide investors with an attractive investment opportunity, and we are grateful for the support of our investors throughout this process," said Saylor.

The Microstrategy executives have also met with the S.E.C. crypto task force and members of the House Financial Services Committee to discuss their proposed regulatory framework for digital assets.

"I've met with the S.E.C. crypto task force. I've met with members of the House Financial Services Committee. I've been trying to get the word out there. I think it's important to get the minds of the American people thinking about this in a rational way," S