A new post by on-chain analyst Willy Woo about what could happen if the U.S. government were to nationalize Strategy, a company that now holds more Bitcoin than nearly every country on Earth, is making the rounds on social media. Woo argues that such a move would not only be a strategic asset play but also a trigger that could send Bitcoin’s price to the moon.

With 582,000 BTC - valued at over $63.8 billion - Strategy has indeed become a proxy Bitcoin reserve, with over half of its $109 billion market cap tied directly to its BTC holdings. 

If the government were to acquire MSTR, according to Woo, it would have to offer shareholders a convertibility rate similar to those of past nationalizations, gold, for example. Those shareholders, who are largely BTC investors, would likely accept the payout and purchase more Bitcoin on the open market, creating new demand.

The main point of Woo's argument is about capital rotation. Up until now, many of Strategy's purchases have come from existing Bitcoin holders converting to MSTR stock. This means that very little new fiat has entered the ecosystem through these transactions. 

Governmental dip

But a government purchase would change things completely. It would bring in a bunch of new USD to the market, and that cash would quickly flow back to BTC. A boost in liquidity could mean a jump in prices.

There is also a macrofinancial angle beyond the market reaction: it would let the U.S. get a lot of Bitcoin without messing with the market. Instead of making a major move by buying BTC, which would definitely change the price, the government could step in via equity, locking in exposure at a fixed rate while potentially setting off a market reaction.

In effect, nationalizing MSTR would mean quietly buying the dip while everyone else chases the rally.