A New Direction for Digital Credit: How Strategy Reframes Business Strategies in the Bitcoin Era

2025 was a historic turning point for the Bitcoin ecosystem. The direction indicated by Strategy founder and chairman Michael Saylor suggests a shift from traditional speculative perspectives to institutional and foundational adoption. Beyond that lies a completely new business domain: digital credit.

2025 as a Historic Turning Point in Bitcoin Institutionalization: Over 200 Companies Adopt New Business Strategies

Between 2024 and 2025, the number of companies holding Bitcoin on their balance sheets surged from 30–60 to approximately 200. This figure indicates that it is not merely a speculative trend but a rapid increase in companies incorporating Bitcoin as part of their asset management strategies.

Saylor emphasizes that this change is not about short-term price increases but is evidence of a solidified institutional foundation. Factors such as the revival of insurance, the introduction of fair value accounting, and official recognition by governments have transformed corporate Bitcoin acquisitions into rational management decisions.

By October 2025, Bitcoin reached a new high. Although price fluctuations continued, the current BTC price is around $89.31K. According to Saylor, these fluctuations are not the main point; what matters is the network effects and the building of fundamental trust.

Rephrasing the Essence of Bitcoin: Universal Capital in the Digital Age

Saylor proposes rephrasing Bitcoin from a “speculative commodity” to “universal capital.” Just as power infrastructure is a universal energy source powering all machinery in factories, Bitcoin can become a universal capital accessible to all companies and individuals in the digital era.

Critics of Bitcoin-holding companies have traditionally argued, “Why would a loss-making company buy Bitcoin?” Saylor directly counters this criticism. Even a company in deficit holding $100 million worth of Bitcoin and generating $30 million in capital gains is a rational management decision.

In reality, companies create value through various means. Companies that generate capital gains to offset losses are more efficient than those holding Bitcoin without generating any.

The Importance of a Long-Term Perspective: Short-Term Price Predictions Are Useless; Fundamentals Are Key

Saylor repeatedly emphasizes that obsessing over short-term price fluctuations is meaningless. Even immediately after Bitcoin hit a new high 95 days ago, concerns about short-term price drops arose. This phenomenon indicates that market participants’ time preferences are too short.

Looking at historical ideological movements, people committed to something typically take about ten years. If they do not succeed, they often spend another ten or twenty years. Currently, as Bitcoin approaches the final stages of commercialization, short-term price forecasts of 90 or 180 days are entirely meaningless.

What is important is that the traditional four-year cycle theory is no longer valid. As fundamental robustness is built, the market is transitioning to a new phase.

Building Trust with Institutional Investors Through Regulatory Development: Integration into the Banking System

One of the most significant events in the changes of 2025 is the revival of insurance. When Saylor bought Bitcoin in 2020, insurance companies had canceled their policies. For four years afterward, companies had to insure their assets with personal funds. In 2025, this situation changed dramatically.

Simultaneously, the introduction of fair value accounting allowed companies to recognize gains from Bitcoin holdings. Companies previously facing unrealized capital gains tax issues could now resolve these problems with positive government guidance.

Even more importantly, major US banks have begun or planned to start Bitcoin-backed lending. By early 2026, JPMorgan Chase and Morgan Stanley are exploring specific Bitcoin trading initiatives. About a quarter of banks plan to launch Bitcoin-backed lending programs.

The Treasury Department has also issued positive guidance on incorporating cryptocurrencies into bank balance sheets, and the chairpersons of the CFTC and SEC have expressed support for Bitcoin. The Bitcoin derivatives market at the Chicago Mercantile Exchange (CME) is advancing toward commercialization, enabling tax-free physical exchanges between Bitcoin worth $1 million and IBIT (Bitcoin spot ETF).

A New Business Domain: The Digital Credit Market with a $10 Trillion Potential

The core of the direction outlined by Saylor and Strategy is the development of a “digital credit” market based on Bitcoin as capital. Strategy is not interested in banking per se but is instead adopting a strategy to leverage US dollar reserves to enhance corporate creditworthiness and offer new credit products.

The reason is simple. Investors purchasing credit tend to be concerned about the volatility of Bitcoin and stocks. Conversely, stock investors seek volatility. To become the largest player in the digital credit market, maximizing corporate creditworthiness is essential. Holding dollar reserves is part of a strategy to enhance the credibility and attractiveness of these products.

The product STRC (Deferred Digital Credit) offered by Strategy aims ideally for listed products with a 10% dividend yield and a market-to-book ratio of 1–2 times. If it captures 10% of the US Treasury market, it would amount to a $10 trillion market.

There are 400 million companies worldwide, and all of them could potentially need credit products based on Bitcoin as capital. Unlike traditional lenders like banks, Strategy’s digital infrastructure-oriented business approach has almost unlimited growth potential.

Currently, many Bitcoin-related companies have a market value to book value ratio below 1. However, the intrinsic value they generate depends not only on current capital management but also on what they can achieve in the future. The digital credit market that Strategy aims to develop is still in its infancy compared to traditional financial markets.

Business Model Transformation: Securing Focus and Competitive Advantage

The reason Strategy is not entering banking is to secure focus. Concentrating management resources on creating the world’s best digital credit products is the only way to generate true business competitive advantage. At the same time, competing directly with customers is considered the most foolish strategy; instead, forming partnerships with banks to provide credit is seen as strategically correct.

This new approach differs significantly from the path traditional financial institutions have taken. By combining Bitcoin, US dollar reserves, and digital credit, Strategy aims to build a new business ecosystem.

2026 will be a pivotal year to see how much this new direction is realized in the market. More than short-term price fluctuations, institutional progress and structural changes at the fundamental level will determine the true value of business in the Bitcoin era.