"In other words" Bitcoin's victory and Strategy's digital lending strategy

Through 2025, Bitcoin has gone beyond mere price fluctuations and has brought about a fundamental transformation of the financial system. Michael Saylor, founder and chairman of Strategy, states that this change is the true victory. He emphasizes that the deepening of institutional and foundational adoption, rather than short-term price swings, proves Bitcoin’s intrinsic value.

2025, the Institutional Adoption of Bitcoin Reached a Fundamental Turning Point

Companies holding Bitcoin on their balance sheets increased from 30–60 in 2024 to approximately 200 by the end of 2025. This figure is not just a statistic but suggests that institutional adoption is rapidly accelerating. According to Saylor, the fundamentals remain extremely strong, and Bitcoin has recorded new ATHs based on this solid foundation.

Progress on the institutional front includes several developments. First, insurance coverage has been restored. Saylor himself was contractually canceled by an insurer when he purchased Bitcoin in 2020, but by 2025, insurance products are once again available. Second, the introduction of fair value accounting principles allows companies to properly recognize unrealized capital gains. This has increased transparency in financial reporting for companies holding Bitcoin, thereby boosting investor confidence.

Third, recognition at the government level has also advanced rapidly. In 2025, Bitcoin was officially recognized by governments as the world’s leading and largest digital commodity. Following this approval, most major US banks have begun offering loans collateralized by IBIT, with about a quarter planning to lend against BTC. JPMorgan Chase and Morgan Stanley are already discussing Bitcoin trading and processing.

The Ministry of Finance has also issued positive guidance regarding the inclusion of cryptocurrencies in bank balance sheets. The chairs of the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) have expressed support for Bitcoin and cryptocurrencies. Furthermore, the Chicago Mercantile Exchange (CME) is progressing with the commercialization of Bitcoin derivatives, and a tax-exempt exchange mechanism for $1 million worth of Bitcoin and IBIT has been introduced.

Short-term Price Predictions Are Meaningless: The Need for a Long-term Perspective

Many market participants tend to react emotionally to short-term price fluctuations. However, Saylor argues that Bitcoin’s valuation should not be based on short spans like 90 or 180 days but on a multi-year long-term outlook. Observing Bitcoin’s 4-year moving average reveals a very bullish upward trend.

The claim that short-term price predictions are meaningless is rooted in Bitcoin’s fundamental philosophy. This philosophy advocates maintaining a low time preference, prioritizing long-term value creation. Looking back over the 10,000-year history of ideological movements, those dedicated to something typically spend over a decade on their pursuits. Achieving the goal of commercializing Bitcoin requires this long-term perspective, and Saylor questions what meaning there is in trying to predict price movements in 2026.

The past 90 days of 2025 are also seen as an excellent opportunity for foresighted investors to increase their Bitcoin holdings. The market is moving in the right direction, and the network is steadily developing.

Bitcoin as “Universal Capital”: Rephrasing Corporate Bitcoin Purchase Strategies

Some express concerns about the strategy of many companies purchasing Bitcoin. However, Saylor insists that this criticism needs to be fundamentally reframed. Judging companies holding Bitcoin on their balance sheets as “speculative” is misguided.

There are approximately 400 million companies worldwide. So far, only a subset has purchased Bitcoin, but theoretically, all 400 million could do so. The essence of corporate Bitcoin purchases is akin to factories owning power infrastructure—they use electricity. Just as electricity is a universal capital powering all machinery, Bitcoin is a universal capital in the digital age.

For example, a company losing $10 million annually might hold $100 million worth of Bitcoin on its balance sheet and generate $30 million in capital gains. Such behavior is highly rational. The criticism should not focus on Bitcoin purchases per se but on the ongoing loss-making structure, which points to the core of corporate finance.

For loss-making companies, holding Bitcoin can improve their balance sheets, while profitable companies can increase profits. Saylor questions whether profitable companies choosing not to buy Bitcoin should be criticized.

The Infinite Potential of the Digital Credit Market and Strategy’s Strategy

Strategy’s vision is to build a “Digital Credit” market based on digital capital like Bitcoin. Saylor emphasizes the enormous size and infinite growth potential of this market.

Looking at traditional credit markets (senior credit, corporate credit), the market is not saturated. By creating new financial products collateralized by Bitcoin—derivatives, exchanges, and even insurance products—results far exceeding traditional financial instruments can be achieved. Currently, there are virtually no insurance companies utilizing Bitcoin as collateral or capital, making this an untapped, massive market.

From a corporate valuation perspective, a company’s stock value is influenced not only by current capital utilization but also by future business potential. Having unimplemented business plans does not mean they cannot be realized.

The reason Strategy does not venture into banking is to avoid dispersing focus. Its goal is to create “the world’s best digital credit products.” Increasing dollar reserves aims to enhance corporate creditworthiness and investor trust. Buyers of credit products tend to shy away from volatility in Bitcoin and stocks, seeking the most creditworthy assets. Dollar reserves serve to foster confidence among these credit investors.

An ideal digital credit product would yield a 10% dividend yield, achieve a book value of 1 or 2, and capture 10% of the US bond market, with a potential market size reaching $10 trillion. In response, Strategy plans to approach this with the simple philosophy: “Bitcoin is digital capital, Strategy is digital credit.”

Conclusion: A Paradigm Shift Toward Long-term Evaluation

In summary, 2025 saw Bitcoin achieve not just a price increase but a fundamental acceptance and institutionalization within the financial system. Progress in regulation, recognition, and integration into banking systems all marked this year.

Rephrasing Saylor’s argument, it is now an era where we should focus less on debates and criticisms within the Bitcoin community and more on actual market opportunities and institutional achievements. Corporate Bitcoin purchases and Strategy’s digital credit strategy are expressions of rational choices and long-term vision by market participants.

Without worrying about short-term price concerns, calmly evaluating the progress of institutionalization and preparations for entering the digital lending market will be key to understanding future markets.