In other words, the victory of Bitcoin in 2025 lies not in price but in institutional adoption—Michael Saylor discusses Strategy's digital lending market strategy

Strategy founder and chairman Michael Saylor emphasized in a recent interview on the “What Bitcoin Did” podcast that the fundamental success of Bitcoin lies not in short-term price fluctuations but in the institutional adoption and evolution of infrastructure by institutions. He states that 2025 has become a historic turning point for the Bitcoin industry.

According to Saylor’s analysis, in other words, what was achieved in 2025 is not just a price increase but the establishment of Bitcoin’s legitimacy within the entire financial system. Companies holding Bitcoin on their balance sheets have rapidly increased from 30-60 in 2024 to approximately 200 by the end of 2025, and this strengthening of fundamentals can be considered a true victory.

Rapid Evolution of Institutional Infrastructure: 200 Companies Holding Bitcoin

The turning point in the Bitcoin market is underpinned by multiple simultaneous institutional developments. The first is the revival of the insurance industry. When Saylor purchased Bitcoin in 2020, insurance companies unilaterally canceled contracts. Over the next four years, these companies continued to hold massive balance sheets while struggling to generate even $40 million in insurance premiums. However, by 2025, this situation changed dramatically. Insurance coverage was restored, and corporate Bitcoin holdings gained legitimacy.

The second development is a shift in accounting principles. The introduction of fair value accounting enabled companies to recognize unrealized capital gains as profits. Previously, many companies faced issues with alternative minimum tax (AMT), but this was resolved in 2025 thanks to proactive government guidance. In other words, the government removed tax barriers for Bitcoin-holding companies.

Even more significant is official recognition by the government. In 2025, the U.S. government officially recognized Bitcoin as a “major and largest digital commodity.” This recognition was not merely symbolic but brought practical changes.

Integration with Banking System Becomes Reality, Derivative Markets Also Mature

Among the institutional developments, the integration with the banking system is particularly noteworthy. At the beginning of the year, only about 5 cents of loans could be obtained against $1 billion worth of Bitcoin collateral. However, by the end of the year, most major U.S. banks had begun offering loans collateralized by IBIT (iShares Bitcoin Trust ETF), and about 25% of banks planned to start offering loans secured by Bitcoin itself. By early 2026, JP Morgan Chase and Morgan Stanley are in discussions regarding Bitcoin trading and processing.

The U.S. Department of the Treasury also issued positive guidance on incorporating cryptocurrencies into bank balance sheets. Leaders of the CFTC and SEC have repeatedly expressed support for Bitcoin and cryptocurrencies.

Market infrastructure is also accelerating in maturity. The Chicago Mercantile Exchange (CME) has advanced the commercialization of Bitcoin derivatives, introducing a physical exchange mechanism where $1 million worth of Bitcoin can be swapped for $1 million worth of IBIT, or vice versa. Importantly, this exchange process is tax-free. In other words, the government has essentially recognized the equivalence of Bitcoin and ETFs.

Short-term Price Predictions Are Meaningless; Evaluation Over a 10-year Horizon Is the Main Point

Saylor repeatedly emphasizes the futility of short-term price predictions. Despite Bitcoin reaching an all-time high 95 days ago, the community is reacting emotionally to recent price fluctuations. In other words, market participants’ time preferences are too short.

Looking back over the entire 10,000-year history of ideological movements, those committed to something have typically thought in terms of a decade. In fact, it’s not uncommon for such efforts to take 20 or 30 years. Evaluating Bitcoin’s commercialization on a 100-day or 100-month basis is inherently nonsensical if the goal is its broader adoption.

However, evaluating Bitcoin’s performance using a 4-year moving average clearly shows a bullish trend. The recent 90-day price declines have been an opportunity for foresighted investors to buy more Bitcoin.

Bitcoin as a Universal Capital in the Digital Age; Corporate Adoption Is Rational Action

Saylor strongly counters criticism of the rapid increase in companies holding Bitcoin. In other words, denying corporate Bitcoin purchase strategies is equivalent to denying rational management decisions.

For example, consider a company that incurs $10 million in annual losses but holds $1 billion worth of Bitcoin, generating $300 million in capital gains. What criticism could such a company face? Saylor points out that the criticism should not be directed at the company’s Bitcoin holdings but rather at its ongoing losses.

There are approximately 400 million companies worldwide. With about 200 currently holding Bitcoin, Saylor argues that concerns about the market being unable to respond are unfounded. In other words, why should the market be unable to handle the purchase of just 200 companies out of 400 million?

Saylor’s analogy is clear. If we compare a factory with power infrastructure, just as electricity is a universal capital that powers machinery, Bitcoin is a universal capital in the digital age. In other words, corporate Bitcoin holdings are not mere speculation but tools for productivity enhancement.

Saylor points out that criticism within the community about companies holding Bitcoin stems from internal discord. In reality, 99% of supporters are aligned, and only about 1% oppose.

Strategy’s Vision: An Infinite Growth Digital Credit Market Supported by Dollar Reserves

When discussing the future of Strategy and related financial companies, Saylor emphasizes the infinite potential of the digital credit market. Strategy itself will not enter banking. In other words, they believe operating as a bank would divert attention from their core business.

Their business philosophy is clear: Bitcoin is digital capital, and Strategy is a company building digital credit. By leveraging dollar reserves and enhancing corporate creditworthiness, they aim to enter the digital lending market.

Their product design, called STRC (Strike Deferred Digital Credit), is ambitious. It is envisioned as a listed product with a 10% dividend yield and a P/B ratio of 1-2. If they can capture 10% of the entire U.S. Treasury bond market, the market size would reach $10 trillion. In other words, the potential scale of the digital credit market is comparable to or larger than existing financial markets.

Saylor argues that viewing the market as saturated is shortsighted. No matter how many companies issue senior or corporate credit, the market will never be saturated. In other words, the size of the financial market will grow infinitely in tandem with economic value creation.

New financial sectors such as derivatives backed by Bitcoin, exchanges, and even insurance are limited in scope. Currently, there are zero insurance companies worldwide using Bitcoin as collateral or capital. In other words, this industry is a vast untapped market waiting to be created.

Saylor also highlights important legal points. The value of a business company’s stock depends not only on current capital utilization but also on future business execution. Just because a plan has not yet been implemented does not mean it cannot be. He advocates that strategic foresight should be incorporated into stock valuation.

Increasing dollar reserves is essential for building corporate credit and trust among credit investors. In other words, stability rather than volatility is what determines value in the credit market. To become the largest player in digital lending, a “non-Bitcoin” balance sheet, such as dollar reserves, significantly enhances corporate creditworthiness.

Saylor believes that the intersection of 2025’s institutional developments and Strategy’s vision holds the true next stage of the Bitcoin industry.