2025: Bitcoin Referred to as Digital Capital — Integration with Banking Systems and the Full-scale Adoption of Collateral Lending

2025 was a year of significant institutional turning points in Bitcoin history, surpassing price fluctuations. As Michael Saylor (Founder and Chairman of Strategy) stated on the “What Bitcoin Did” podcast, the fundamental victory in the industry lies in progress at the infrastructural level—such as the revival of insurance coverage, changes in accounting standards, and official integration into the banking system. Saylor emphasizes that understanding Bitcoin’s true value should focus on the expansion of institutional and foundational adoption rather than short-term market volatility.

Three Major Turning Points in 2025—Dramatic Changes in Fundamentals

The most notable change pointed out by Saylor is the rapid increase in the number of companies holding Bitcoin. He forecasts that the number of companies, which was about 30–60 at the end of 2024, will reach approximately 200 by the end of 2025. This suggests that institutional adoption is gaining serious momentum.

Even more importantly, the situation where insurance coverage for companies holding Bitcoin was terminated has completely reversed in 2025. Saylor himself was canceled from insurance contracts when he purchased Bitcoin in 2020, and for four years afterward, he had to insure his assets personally. The improvement in this situation in 2025 indicates a major shift in industry-wide perception.

Another key change is the introduction of fair value accounting, allowing Bitcoin-holding companies to recognize unrealized capital gains as profits. Companies previously facing issues like alternative minimum taxes or unrealized gains taxes on corporate taxes found solutions through government guidance in 2025. Additionally, the U.S. government officially recognizing Bitcoin as a major and the largest digital commodity worldwide symbolizes regulatory approval for the entire industry.

Integration into the Banking System—Full-Scale Collateral Lending and Market Opening

The most concrete progress on the institutional front is the start of Bitcoin-collateralized lending by major U.S. banks. From just a few cents of lending against $1 billion worth of Bitcoin at the beginning of the year, most large banks will begin offering loans collateralized by IBIT (Bitcoin ETF) by year-end, with about a quarter planning to start direct Bitcoin collateralized loans.

JPMorgan Chase and Morgan Stanley are both beginning discussions on Bitcoin trading and processing. The U.S. Department of the Treasury has issued positive guidance on incorporating cryptocurrencies into bank balance sheets, and the chairs of the CFTC and SEC have explicitly expressed support for Bitcoin.

On the market infrastructure front, commercialization of Bitcoin derivatives trading at the Chicago Mercantile Exchange (CME) has advanced, and a tax-free physical exchange mechanism between Bitcoin worth $1 million and IBIT has been introduced. This system allows investors to swap Bitcoin and ETFs without tax burdens.

Don’t Be Distracted by Short-Term Market Fluctuations—Evaluate Bitcoin with a Long-Term Perspective

Saylor repeatedly emphasizes the futility of short-term price predictions. He points out the contradiction that Bitcoin, which hit an all-time high 95 days ago, can be the focus of discussion after just a few days of decline. According to him, if the goal is commercialization, success should not be evaluated over ten weeks or ten months.

Bitcoin’s fundamental philosophy is to “lower time preference,” and throughout history, ideological movements have typically taken over a decade of dedicated effort. Saylor himself notes that many have only succeeded after more than 20 years of persistent effort.

Evaluating Bitcoin’s performance using the 4-year moving average reveals a clear bullish trend. The 2026 Bitcoin market will reach an important stage, but one should not try to predict prices 90 or 180 days ahead. Instead, it’s crucial that the industry and network are moving in the right direction. Saylor states that the recent 90-day price decline was “an excellent opportunity for foresightful investors to buy more Bitcoin.”

Bitcoin = Universal Capital in the Digital Age—Theoretical Foundations of Corporate Adoption Strategies

Saylor develops a logic that reinterprets criticism of Bitcoin-holding companies by framing Bitcoin as a universal capital in the digital era. Just as power infrastructure is a universal capital powering all machinery in factories, Bitcoin is a universal capital of the digital age, he argues.

He claims that corporate Bitcoin purchases are not mere speculation but acts of acquiring tools to improve productivity. Even loss-making companies can generate profits through unrealized capital gains by holding a suitable amount of Bitcoin on their balance sheets. Profitable companies can also see increased revenues.

Saylor’s direct question is: “There are 400 million companies in the world, so why can’t the market respond to just 200 Bitcoin-adopting companies?” The real issue is not the number of companies adopting Bitcoin but the potential for all 400 million to do so. From the perspective of traditional credit and financial markets, new markets based on Bitcoin as collateral or capital could, in theory, produce far greater results than conventional ones.

Strategy: Building a Digital Credit Market Backed by Dollar Reserves

Saylor’s vision at Strategy is to leverage Bitcoin as “digital capital” and build a “digital credit” market on top of it. The reason the company is not entering banking is a strategic decision to maintain focus and avoid market competition. Strategy aims to create “the world’s best digital credit products” to transform the currency system, banking system, and credit markets themselves.

The dollar reserves they set aside are intended to enhance corporate creditworthiness and investor confidence. While investors in Bitcoin and stocks seek higher volatility, investors purchasing credit products seek the most creditworthy assets. Holding dollar reserves as collateral significantly boosts the appeal and trustworthiness of digital credit products.

For example, a product called STRC (Strategy Deferred Digital Credit), with a 10% dividend yield and valuation multiples of 1–2 times, is an ideal form. If they can capture 10% of the U.S. bond market, that market size would reach $10 trillion. The logic is that digital credit products, serving a role similar to bank credit products, could achieve far greater results than traditional ones within this enormous market.

An important legal point Saylor highlights is that the value of business company stocks is not determined solely by current capital utilization but also by future potential. The phrase “Just because I haven’t done it yet doesn’t mean I can’t” suggests that Strategy’s future outlook could extend beyond its current scope. Untapped areas such as digital credit markets, digital collateralized lending markets, and even insurance markets backed by crypto assets are limitless.