The fundamental shift in Bitcoin's business value in 2025: Michael Saylor discusses the profound transformation

Michael Saylor, Founder and Chairman of Strategy, recently pointed out in an interview on the “What Bitcoin Did” podcast that the true value of Bitcoin has become quite clear. It can be said that structural progress in the institutional and regulatory framework, rather than short-term price fluctuations, demonstrates the intrinsic success of this asset class.

2025 will be a pivotal year for Bitcoin adoption models, and these changes are expected to have a profound impact on the business environment from 2026 onward. Saylor emphasizes that three factors—entry of institutional investors, dramatic improvements in the regulatory environment, and integration with the banking system—are progressing simultaneously.

Accelerated Institutional Adoption, Over 200 Companies with Balance Sheet Strategies

The number of companies holding Bitcoin is rapidly increasing. It was around 30 to 60 in 2024, but is expected to reach approximately 200 by the end of 2025. This expansion is not just a matter of numbers but indicates a qualitative change in corporate business judgment.

From Saylor’s own experience, the importance of this shift becomes evident. When he started purchasing Bitcoin in 2020, insurance companies canceled their contracts. The situation of having to continue insuring with personal assets for four years suggested a quite extreme environment. However, by 2025, insurance has been revived, and with the introduction of fair value accounting, companies can finally recognize profits.

This change can be rephrased as Bitcoin holdings being recognized as legitimate business decisions. For unprofitable companies, Bitcoin assets on the balance sheet could generate capital gains and offset profits. Conversely, profitable companies could see further revenue growth from the appreciation of their holdings.

Transformation of the Banking System and the Credit Provision Model

The biggest turning point in 2025 was the full-scale initiation of Bitcoin-backed loans by major US banks. At the beginning of the year, loans secured by about $1 billion worth of Bitcoin could only be obtained at around 5 cents. However, by the end of the year, most major banks had started offering loans collateralized by IBIT (Bitcoin spot ETF), and about a quarter of banks announced plans for direct Bitcoin collateralized loans.

Furthermore, in early 2026, JPMorgan Chase and Morgan Stanley began discussions on Bitcoin trading and processing. This indicates that the traditional financial system has prepared to incorporate Bitcoin.

The Treasury Department also issued positive guidance on including cryptocurrencies in bank balance sheets, and the Chairmen of the CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) have expressed support for Bitcoin. Support from these regulatory authorities is a significant signal.

Market Infrastructure Maturity and the Introduction of Tax-Free Mechanisms

The commercialization of Bitcoin derivatives markets at CME (Chicago Mercantile Exchange) is progressing rapidly. Notably, a physical issuance and redemption mechanism has been introduced, allowing the exchange of $1 million worth of Bitcoin for $1 million worth of IBIT, or vice versa. These transactions are tax-free, greatly increasing market efficiency.

As Saylor points out, all the elements necessary for commercialization, globalization, and institutionalization of assets have been in place by 2025. Market maturity signifies that Bitcoin as a business has been established.

Short-term Price Evaluation Is Meaningless; Long-term Business Perspective Is Essential

Saylor emphasizes that predicting market trends over 100 days is pointless. Discussing price fluctuations immediately after Bitcoin’s all-time high, which was surpassed 95 days ago, overlooks fundamental progress.

Looking back over 10,000 years of history, people engaged in significant ventures typically think on a decade-long timescale. Evaluating Bitcoin’s success with a 4-year moving average reveals a strongly bullish trend. Predicting short-term prices in 2026 is not a valid basis for business decision-making.

What matters is that the industry and underlying network are moving in the right direction. The price decline over the past 90 days has been an excellent opportunity for forward-looking businesspeople to buy more Bitcoin.

The Essential Value of Bitcoin-Holding Companies: Productivity Enhancement Tool

While there are criticisms of Bitcoin-holding companies, Saylor dismisses them. Companies holding Bitcoin can be likened to factories with power infrastructure. They are not mere speculative assets but foundational tools to improve business efficiency.

Just as electricity is a universal capital powering all machinery, Bitcoin is a universal capital in the digital age. With over 400 million companies worldwide, it is impossible for the market to saturate with only about 200 companies adopting Bitcoin.

Companies incurring losses but not holding Bitcoin are arguably making less rational business decisions. The real debate should be about what alternative assets to Bitcoin are recommended.

Digital Credit Business: Strengthening Creditworthiness through Dollar Reserve Strategies

Strategy’s core business strategy is building a digital credit market. Saylor explicitly states he is not interested in banking, to maintain focus on his core business. Transforming the global currency system, banking system, and credit markets requires avoiding dispersal into peripheral activities.

Strategy aims to leverage dollar reserves to enhance corporate creditworthiness and enter the digital lending market. In other words, it is a business model positioning Bitcoin as capital and the dollar as a credit supplement.

Investors purchasing credit consider Bitcoin and stock volatility too high. Holding dollar reserves enhances creditworthiness and increases the appeal of digital lending products. This strategic decision is well-calculated and deliberate.

The Massive Potential of the Digital Credit Market: $10 Trillion in Potential Scale

The potential market size for digital credit products offered by Strategy is enormous. Capturing 10% of the US Treasury bond market would amount to $10 trillion. Many companies issue senior and corporate credit, but the market for Bitcoin-collateralized financial products remains largely untapped.

Bitcoin-collateralized derivatives, exchanges, and even insurance companies utilizing Bitcoin capital could theoretically outperform traditional businesses significantly. Currently, no insurance companies worldwide use Bitcoin as collateral or capital. This indicates that this business domain is entirely undeveloped.

Saylor emphasizes that a company’s stock value is influenced not only by current capital utilization but also by what it plans to do in the future. Even if a business is not currently active, dismissing it as impossible is a mistake. There remains considerable room for developing business models that utilize digital capital like Bitcoin.

Conclusion: A Fundamental Turning Point in the Business Environment

2025 will be remembered as the year Bitcoin’s business status fundamentally shifted. Rapid expansion of institutional adoption, dramatic regulatory improvements, integration with the banking system, and market infrastructure maturation all occurred simultaneously.

These changes mean that Bitcoin has been redefined from a mere speculative asset to a fundamental asset as a business infrastructure. From 2026 onward, new financial businesses such as digital credit could be built on this foundation, with the market size becoming quite substantial.

Focusing on long-term business perspectives and evaluating the future of Bitcoin and digital capital, rather than reacting to short-term price fluctuations, is the true basis for value judgment.