The fundamental significance of Bitcoin institutionalization—Strategy founder discusses a historic transformation

Michael Saylor, founder and chairman of Strategy Inc., appeared on the renowned podcast “What Bitcoin Did” to discuss the fundamental turning point for Bitcoin in 2025. What emerges from his remarks is not short-term price fluctuations but a deeper development—an institutional integration of the entire financial system.

From Institutional Adoption to Insurance Revival—Fundamental Changes Indicated by the Fundamentals

According to Saylor, 2025 will be remembered not just as a period of economic growth but as the year Bitcoin became embedded in the economic infrastructure. He pointed out that the number of companies holding Bitcoin on their balance sheets surged from 30–60 in 2024 to approximately 200 by the end of 2025.

More importantly, the institutional infrastructure has been revived. In 2020, when companies purchased Bitcoin, insurance companies canceled policies, and for four years, firms had to cover insurance with personal assets. However, by 2025, this situation has completely changed. Insurance coverage has been restored, and profits can now be recognized through the adoption of fair value accounting.

At the same time, tax barriers have been lifted. The government has issued positive guidance regarding unrealized capital gains taxes, and major US banks have announced the launch or planning of Bitcoin-backed loans. The derivatives market at CME (Chicago Mercantile Exchange) has been commercialized, and a tax-free exchange mechanism between IBIT (Bitcoin spot ETF) and physical Bitcoin has been introduced. These developments signify that Bitcoin has gained “full citizenship” in terms of regulation, accounting, and finance.

The Meaning of Not Being Distracted by Short-Term Price Fluctuations—Bitcoin’s Success Viewed from a 10-Year Long-Term Perspective

In the interview, Saylor emphasized that a 100-day market forecast is meaningless. Despite Bitcoin reaching an all-time high 95 days ago, the market reacts emotionally to short-term declines afterward. However, he argues that this is an inappropriate framework for measuring Bitcoin’s fundamental success.

From a historical perspective, he pointed out that meaningful social change typically requires a decade of dedication. If the goal is Bitcoin commercialization, evaluating it with a four-year moving average shows a “quite bullish trend.” Instead of seeking significance in the 2026 price forecast, what matters is that the network is “moving in the right direction.” The price decline over the past 90 days was a “buying opportunity” for foresightful investors, he said.

Bitcoin as a Universal Capital—The Fundamental Value of Corporate Balance Sheet Strategies

Saylor clearly rebutted criticisms of companies purchasing Bitcoin. His argument is rooted in the fundamental value system of strategic capital allocation by corporations.

For example, consider a company with a $10 million annual deficit that holds $100 million in Bitcoin and generates $30 million in capital gains. The question he posed is whether the criticism should target “Bitcoin purchases” or “ongoing losses.”

More fundamentally, he likened Bitcoin-holding companies to “factories with power infrastructure,” rather than “mere speculators.” Just as electricity was the universal capital of the industrial age, Bitcoin is the universal capital of the digital age. Concerns about whether the market can handle the 20 billion dollars of potential corporate Bitcoin purchases are essentially underestimating the market size. This acquisition strategy is a rational action aimed at improving productivity.

Ambitions for the Digital Credit Market—Strategy’s Building a New Financial Ecosystem with Dollars and BTC

Finally, Saylor revealed Strategy Inc.'s true strategy. The company does not intend to enter banking but harbors ambitions in the digital credit market.

Its product, “STRC (Strategy Deferred Digital Credit),” aims to be an exchange-traded product with an ideal dividend yield of 10% and a book value ratio of 1–2 times. If it captures 10% of the US Treasury market, the potential market size could reach $10 trillion.

To realize this vision, Strategy is increasing its holdings of dollar reserves and Bitcoin reserves. This is not merely asset accumulation but a signal to credit market investors. Credit investors tend to avoid volatility, and dollar reserves strengthen the company’s creditworthiness, enhancing the appeal of digital credit products.

Saylor emphasized that the senior credit and corporate credit markets are far from saturation. Bitcoin-backed exchanges, insurance products, and derivatives businesses are all untapped areas. There are currently zero insurance companies utilizing Bitcoin as collateral or capital, indicating enormous potential in this industry.

Institutional adoption, regulatory clarity, and the maturation of financial infrastructure have brought about a fundamental turning point for Bitcoin and the new financial ecosystem centered around it. Beyond short-term price fluctuations, these structural changes are the core forces that will shape the future of the industry.