Part 2: Building a Bitcoin Reserve – Playbooks for Nations, Institutions, and Corporations

With Bitcoin supply tightening, institutions must act fast. This is the playbook for governments, corporations, and municipalities to build Bitcoin reserves before it’s too late.

The Great Bitcoin Reserves: How Digital Asset Stockpiles Will Redefine Economic Power is a four-part series exploring the future of digital asset reserves. Read Part 1 on Bitcoin as a strategic reserve, Part 2 on institutional accumulation, Part 3 on policy shifts, and Part 4 on tokenized treasuries shaping global finance.

Looking to navigate and invest in the age of Web3? Visit Nautilus for expert guidance and support in this rapidly evolving ecosystem. Stay updated in real-time by following Tom Serres on X.com or LinkedIn.

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Buying Bitcoin at scale is not the same as retail traders stacking a few sats on a weekend dip. If a government, municipality, or corporate treasury tries to log in, market-buy billions of dollars’ worth of Bitcoin, and call it a day, they are basically handing free money to every trader who has been lurking in the order books, waiting to dump into their buy wall. That is not how institutions move.

Bitcoin is the hardest, most liquid digital asset in the world, but it is still supply constrained. The math is simple, there will only ever be 21 million Bitcoin and most of it is already locked up in cold storage, sitting on hardware wallets, or buried under 12 feet of sand by some guy who lost his seed phrase.

Now, factor in the 1 million BTC purchase authorizations happening in various state legislative bills, and things start getting tight real fast. If all 50 states follow suit and pass similar propositions, then we are looking at a scenario where governments alone are trying to buy up 50 million BTC in a world where only 21 million exist. You see the problem here.

And that is just the states. We have not even accounted for the federal government, foreign governments, major corporations, sovereign wealth funds, insurance companies, private wealth offices, and every billionaire who suddenly realizes their stockpile of fiat is evaporating faster than their followers on social media after posting a bad take.

At some point, Bitcoin’s supply crunch is going to make the toilet paper shortage of 2020 look like a minor inconvenience. When all of these entities are racing to acquire BTC, getting your hands on it is going to require more than just cash, it is going to require strategy, influence, and most importantly, early positioning.

Learn More: Liquid Startups and the VC Dilemma, Decentralizing Consciousness, A Day in the World of Machine Hustle, and The Foundations of Tokenized Real-World Assets.