Michael Saylor discusses Bitcoin adoption in 2025—significant progress and fundamental industry changes

Mr. Michael Saylor (Founder and Chairman of Strategy) appeared on the “What Bitcoin Did” podcast and discussed the turning point in the industry. He emphasized that fundamental progress in the institutional framework, rather than short-term price fluctuations, is the true victory for Bitcoin. He stated that a significant number of companies are incorporating Bitcoin into their balance sheets and that the banking system has begun to seriously accept digital assets, bringing about a structural change in the entire industry.

Significant Progress in the Institutional Framework — Over 200 Companies Adopt Bitcoin

The year 2025 has been marked by accelerated adoption by institutional investors. According to Mr. Saylor, the number of companies holding Bitcoin on their balance sheets is expected to increase from 30–60 in 2024 to approximately 200 by the end of 2025. This is not just an increase in the number of companies but suggests an essential improvement in fundamentals.

He listed several important changes in the institutional framework. First, the scope of insurance coverage has been revived. In 2020, insurance contracts were lost when purchasing Bitcoin, but by 2025, coverage has been reinstated. Next, with the introduction of fair value accounting, companies can finally recognize unrealized capital gains as profit. Furthermore, the regulatory environment has fundamentally changed as governments officially recognize Bitcoin as “the world’s leading and largest digital commodity.”

Progress is also being made in integrating with the banking system. At the beginning of the year, a $1 billion Bitcoin-backed loan could only be obtained at 5 cents, but by the end of the year, most major U.S. banks have started offering loans collateralized by IBIT (iShares Bitcoin Trust). About a quarter of banks are planning to offer direct Bitcoin collateral loans. It was also mentioned that JPMorgan Chase and Morgan Stanley are already discussing building Bitcoin trading and settlement systems.

Market infrastructure is rapidly maturing. The Chicago Mercantile Exchange (CME) is advancing the commercialization of Bitcoin derivatives. Notably, a mechanism has been introduced that allows tax-free physical exchange between $1 million worth of Bitcoin and $1 million worth of IBIT. With these elements in place, an environment has been created where asset commercialization, globalization, and institutionalization can occur simultaneously.

Rephrasing Short-Term Predictions — The Need for a Long-Term Perspective

In a discussion with Danny Nowels, Mr. Saylor expressed criticism of short-term price predictions. He mentioned, “Trying to predict market trends over 100 days is futile.” Despite Bitcoin reaching an all-time high 95 days ago, the focus has shifted to the current price level, and he strongly criticized this short-termism.

In other words, the philosophy of Bitcoin is that “time preference should be low.” Historically, people dedicated about 10 years to a movement, and it’s not uncommon for success to take 20 or 30 years. If the goal is the commercialization of Bitcoin, one should not analyze success in units of 10 weeks or 10 months.

Evaluating Bitcoin performance using the 4-year moving average shows a fairly bullish trend. Over the past 90 days, it was noted that it was an excellent opportunity for foresighted investors to buy more Bitcoin. Mr. Saylor believes the industry is moving in the right direction and that the network’s foundation is solid.

Bitcoin Business Strategy — Strategy’s Digital Credit Concept

Mr. Saylor emphasized that Bitcoin should be repositioned not just as a speculative asset but as part of corporate business strategy. For example, a company with an annual loss of $10 million holding $100 million worth of Bitcoin and generating $30 million in capital gains should not be criticized.

In business, companies exist to create value. That value should be determined by operational capability, and holding Bitcoin on the balance sheet can be a means of value creation. For loss-making companies, it can lead to management improvement, and for profitable companies, it can contribute to increased revenue. Companies holding Bitcoin are like factories with power infrastructure. Just as electricity is a universal capital, Bitcoin is a universal capital in the digital age.

Regarding concerns about market size, Mr. Saylor posed a fundamental question. There are approximately 400 million companies worldwide. If only 200 are currently buying Bitcoin, why do people think the market cannot handle more? Instead, he asked why all 400 million companies cannot buy Bitcoin. This is a question related to the essence of business philosophy.

Potential to Expand Business Models Using Dollar Reserves

Strategy’s approach is not just about holding cryptocurrencies but about building a digital credit market. Mr. Saylor clearly stated, “Bitcoin is digital capital, and Strategy is digital credit.”

The reason this company does not enter banking as a business is to avoid dispersing focus. Creating the world’s best digital credit products is essential to realizing the true vision.

Holding dollar reserves aims to enhance the creditworthiness of companies and increase trust among credit investors. Unlike equity investors, credit investors are concerned about Bitcoin’s volatility. Holding dollar reserves increases the appeal of digital credit products and attracts more investors.

The market size for digital credit is enormous and has almost unlimited expansion potential. Multiple business models utilizing Bitcoin collateral—such as senior credit, corporate credit, derivatives, exchange operations, and insurance—are theoretically feasible. The fact that there are currently zero insurance companies using Bitcoin as collateral or capital suggests that the entire industry still has untapped potential.

Finally, Mr. Saylor pointed out an important legal perspective. “The value of a business’s stock is not only determined by how it currently utilizes capital but also by what it plans to do in the future. Just because something is not being implemented now does not mean it is impossible,” encapsulating the essence of Strategy’s business strategy. The digital credit market based on Bitcoin has the potential to bring about a fundamental change in the financial system and is a highly innovative concept.