The Essential Victory of Bitcoin Adoption: Michael Saylor Discusses the Major Shift in 2025

The year 2025 will be recorded as the year of a “systemic revolution” that is far more significant than Bitcoin’s price fluctuations. What emerges from MicroStrategy founder and chairman Michael Saylor’s comments on the podcast “What Bitcoin Did” is a reconsideration of what true victory for Bitcoin entails. Drawing from his past experience insuring personal assets for his company, Saylor provides a detailed explanation of the journey from those early structural changes to today.

The Fundamental Change Indicated by Accelerating Institutional Adoption

The biggest turning point in the Bitcoin market is not short-term price movements but its integration into corporate balance sheets. As of 2024, approximately 30 to 60 companies held Bitcoin, but by the end of 2025, this number is expected to reach around 200. This acceleration suggests more than just increased speculation; it indicates a qualitative shift in management decision-making.

Behind the institutional adoption highlighted by Saylor is a rapid improvement in the regulatory environment across the entire financial system. Adding Bitcoin to a balance sheet has shifted from an “irrational choice” to a “rational management strategy.”

The Revival of Insurance and Changes in Accounting Standards That Brought Structural Transformation

In 2020, when Bitcoin was purchased, insurance companies unilaterally canceled their policies. Saylor notes that over the past four years, he has had to bear the company’s insurance costs from personal assets, and without improvements in this situation, MicroStrategy might not have survived. The revival of insurance coverage in 2025 symbolizes a shift in industry-wide perception.

At the same time, the introduction of fair value accounting principles has enabled companies to recognize capital gains from Bitcoin holdings as profits. Previously, unrealized gains could not be recorded, and companies faced issues related to alternative minimum taxes. However, proactive government guidance has resolved these issues. These changes are not limited to individual companies but signify a systemic transformation of the entire financial system.

New Mechanisms for Bank Lending and Bitcoin Collateral

More noteworthy is the trend of major US banks beginning to engage in Bitcoin-backed lending. At the start of the year, loans secured by about $1 billion worth of Bitcoin yielded only about 5 cents on the dollar, but by the end of the year, more banks have started offering loans collateralized by IBIT (Bitcoin ETF), and about a quarter of banks have announced plans for Bitcoin (BTC) collateralized loans.

JPMorgan Chase and Morgan Stanley are reportedly negotiating Bitcoin trading and processing early in 2026. The Treasury Department has also issued positive guidance regarding the inclusion of crypto assets in balance sheets, and the chairpersons of the CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) have expressed support for Bitcoin.

At the Chicago Mercantile Exchange (CME), commercialization of Bitcoin derivatives is underway, with the introduction of a physical issuance and redemption mechanism exchanging $1 million worth of Bitcoin for $1 million worth of IBIT. This tax-free exchange system is a key incentive accelerating institutional adoption.

The Futility of Short-Term Price Fluctuations and Long-Term Value Assessment

Saylor repeatedly emphasizes the point that short-term price predictions are meaningless. Despite Bitcoin reaching a new high 95 days ago, market participants are reacting emotionally to recent price swings. Looking back over the past 10,000 years of historical decision-making, those dedicated to something typically spend a decade on it. If the goal is the commercialization of Bitcoin, success analysis over weeks or months is fundamentally flawed.

Evaluating Bitcoin’s performance using a four-year moving average reveals a notably bullish trend. It is crucial to observe the deep-seated changes in network evolution and institutional acceptance without being distracted by short-term price movements. Saylor points out that the past 90 days have been an excellent opportunity for foresightful investors to buy more Bitcoin.

Bitcoin as a Universal Capital in the Digital Age

Saylor argues that criticism of companies adopting Bitcoin purchase strategies is misguided. For example, if a company with annual losses of $10 million holds $100 million worth of Bitcoin on its balance sheet, generating $30 million in capital gains, what exactly is being criticized?

The criticism should not be directed at the company’s Bitcoin purchases but at ongoing losses. In fact, companies that are losing money yet hold Bitcoin should be the real subject of scrutiny.

There are approximately 400 million companies worldwide. The concern that the market will saturate if only about 200 companies buy Bitcoin contains the same fallacy as claiming the market is full with just 200 people buying Bitcoin. Companies holding Bitcoin are akin to factories with power infrastructure—they are not mere speculative assets but tools for productivity enhancement. Just as electricity is a universal capital, Bitcoin is a universal capital for the digital age.

Strategy’s Digital Credit Strategy and Market Size

MicroStrategy’s goal is not banking but the “digital credit” market. Building credit products backed by Bitcoin is the company’s true vision, holding the potential to surpass existing financial product markets in scale.

The number of companies issuing senior credit and corporate credit, the potential scale of Bitcoin-backed derivatives exchanges, and even the insurance business capitalized by Bitcoin—all these sectors represent vast, untapped territories. Currently, no insurance companies utilize Bitcoin as collateral or capital, illustrating the growth potential of this sector.

The reason for establishing dollar reserves is to enhance corporate creditworthiness and investor confidence. Equity investors seek expansion of Bitcoin holdings and increased volatility, while credit investors demand assets with the highest credit quality. To become the largest player in digital lending, leveraging dollar reserves to boost corporate creditworthiness and increase product appeal is strategically essential.

Saylor’s business philosophy is straightforward: Bitcoin is digital capital, and Strategy is digital credit. Capturing 10% of the US Treasury bond market would amount to a $10 trillion market. To maximize this potential, focus must be unwavering. If the true vision is to transform the global monetary system, banking system, and credit markets, engaging in parallel ventures or competing with customers would be the most foolish act.