Finally, institutional adoption is on the right track: Michael Saylor discusses the fundamental shift in Bitcoin

What Michael Saylor recently discussed on the podcast “What Bitcoin Did” suggests that the Bitcoin market has undoubtedly entered a new phase. Instead of being distracted by short-term price fluctuations, Saylor emphasized that the true significance lies in the institutional and infrastructural advancements finally achieved in 2025. Below is a reconsideration of that core message.

Accelerated Institutional Adoption, Revival of Insurance, Improved Accounting Systems—Structural Changes Finally Realized in 2025

2025 has been an extraordinary year in Bitcoin’s history. According to Saylor, the number of companies holding Bitcoin on their balance sheets surged from 30–60 in 2024 to approximately 200 by the end of 2025. This is not just a numerical increase but indicates a genuine entry of institutional investors.

More importantly, long-standing issues have been progressively resolved. The insurance problem is particularly symbolic. When Saylor decided to purchase Bitcoin in 2020, insurance companies canceled existing policies. Over the next four years, he had to continue insuring several hundred million dollars of assets with personal funds. In 2025, this situation finally improved. Insurance companies resumed underwriting policies for Bitcoin-holding companies.

At the same time, reforms in accounting standards also advanced. The introduction of Fair Value Accounting allowed companies to finally recognize unrealized capital gains as profits. This brought a significant change in taxation as well. Previously, Bitcoin-holding companies faced issues related to taxes on unrealized gains, but proactive government guidance finally eliminated this obstacle.

Additionally, in 2025, Bitcoin was officially recognized by the government as a “Major Digital Commodity.” This recognition symbolizes a fundamental shift in the regulatory environment for digital assets. At the beginning of the year, lending against $1 billion worth of Bitcoin was only about 5 cents on the dollar. By the end of 2025, nearly all major US banks had begun offering loans collateralized by IBIT (Bitcoin ETF), and about a quarter of banks announced plans to lend against physical Bitcoin.

Integration into the Banking System and Rapid Maturation of Market Infrastructure

The process of Bitcoin truly becoming part of the financial system is also accelerating. JPMorgan Chase and Morgan Stanley have begun discussions regarding Bitcoin trading and processing. The Treasury Department has issued positive guidance on including Bitcoin-related assets on balance sheets, and the chairs of the CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) have publicly expressed support.

Innovations are also progressing in market infrastructure. The CME (Chicago Mercantile Exchange) has commercialized Bitcoin derivatives markets, and a tax-free physical exchange mechanism for Bitcoin and IBIT worth $1 million has been introduced. This system enables efficient asset transfers between Bitcoin spot holdings and ETFs.

Short-term Price Fluctuations Are Illusions; Long-term Perspective and Action Are Needed

Interestingly, Saylor remains cautious about current price levels. The Bitcoin price, which hit a new all-time high in early October 2025, has since fluctuated. However, a crucial point is that short-term price predictions are meaningless; Bitcoin’s performance should be evaluated using the four-year moving average.

Saylor assesses that the entire industry is heading in the right direction. The same applies to the network aspect. The price decline over the past 90 days can be reinterpreted as a buying opportunity for forward-looking investors. Historically, individuals dedicated to revolutionary ideologies and technologies have taken about ten years to realize their goals. When considering Bitcoin’s commercialization, evaluating on a 100-day or 100-month basis can lead to losing sight of the core.

Clarifying Misconceptions About Bitcoin-Holding Companies—Focusing on Productivity Enhancement

There are various criticisms from the market regarding companies holding large amounts of Bitcoin. However, Saylor’s point is clear: a company’s decision to buy Bitcoin is, in essence, a rational investment aimed at improving productivity, not something to criticize.

For example, suppose a company incurs an annual loss of $10 million but holds $1 billion worth of Bitcoin on its balance sheet, realizing a capital gain of $300 million. What is the problem here? The issue is ongoing red ink, not the Bitcoin purchase. In other words, companies that are losing money but do not hold Bitcoin are the ones that should be held accountable.

Using Saylor’s words, Bitcoin-holding companies are “like factories owning power infrastructure.” They are not mere speculative assets but tools for productivity enhancement utilizing universal capital in the digital age. There are about 400 million companies worldwide. Why assume the market will saturate with just around 200 Bitcoin purchases? That question is valid.

Unique Strategy: The Untapped Massive Market of Digital Credit

Saylor’s MicroStrategy envisions building “digital credit,” not banking. By leveraging two forms of capital—US dollar reserves and Bitcoin—they aim to enhance corporate creditworthiness and pioneer the digital credit market.

The potential scale of the digital credit market is astonishing. While traditional senior credit and corporate credit markets are considered saturated, the credit market collateralized by Bitcoin remains largely untapped. Theoretically, it could yield results far beyond traditional financial products. Fields such as Bitcoin-backed derivatives, Bitcoin exchanges, and even Bitcoin-based insurance are currently near zero.

The reason for holding dollar reserves is simple. For buyers of credit products, volatility in Bitcoin and stocks is excessively high. To appeal to investors seeking maximum creditworthiness, companies need to present the most stable and reliable asset base. Increasing dollar reserves directly enhances the attractiveness of credit products.

Saylor emphasizes: Bitcoin is digital capital, and Strategy is digital credit. Based on this clear philosophy, the company is focusing its management resources on creating the world’s best digital credit products. Entry into banking is intentionally avoided, as it would distract from this strategic focus.

There is no doubt that 2025 marked a turning point for institutional adoption and regulatory environment shifts. From 2026 onward, Bitcoin will be further integrated into the core of the financial system, and the role of digital credit specialists like MicroStrategy is expected to expand rapidly. Without being swayed by short-term price fluctuations, the essence of this structural change can be rephrased as a redefinition of the financial system itself.