The institutional advancement of Bitcoin will be realized in 2025, rephrasing MicroStrategy's next strategic plan

The year 2025 became a turning point for the Bitcoin industry. The simultaneous progress of institutional adoption, regulatory environment development, and financial infrastructure integration can be seen as a shift from pilot phases to full-scale advancement. Michael Saylor, founder and chairman of MicroStrategy, emphasized in an interview on the “What Bitcoin Did” podcast that Bitcoin’s true victory lies not in short-term price movements but in fundamental changes at the core level.

Historic Progress at the Core Level: Adoption by 200 Companies Opens a New Chapter

The most significant breakthrough pointed out by Saylor is the rapid increase in the number of companies holding Bitcoin on their balance sheets. From 30–60 companies in 2024, it is expected to reach about 200 by the end of 2025, and this trend is projected to accelerate further in 2026.

In other words, Bitcoin is no longer just an asset for individual investors or crypto-focused companies but is becoming embedded as part of traditional corporate financial strategies. The revival of insurance applications and the adoption of fair value accounting principles have allowed companies to properly recognize Bitcoin’s value on their balance sheets.

An additional notable change is that major US banks are beginning to offer Bitcoin-backed loans in earnest. While at the start of the year, borrowing against Bitcoin worth $1 billion was not possible, by the end of the year, about a quarter of major banks, including JPMorgan Chase and Morgan Stanley, announced plans for BTC-collateralized lending. This progress indicates that financial institutions are starting to recognize Bitcoin as a credible asset.

Evolution Toward Digital Credit: Reframing Bitcoin as ‘Universal Capital’

Saylor used the phrase “universal capital in the digital age” to reframe the essence of Bitcoin. Just as electricity is the fundamental energy powering all machinery, Bitcoin is envisioned as a basic asset supporting the digital economy.

This reframing serves as a strong rebuttal to criticisms that view Bitcoin purchases as mere speculation. For example, if a company recording a $10 million annual loss generates $30 million in capital gains from $100 million worth of Bitcoin on its balance sheet, its value creation is clear.

Saylor advocates shifting the perspective from criticizing corporate Bitcoin adoption to focusing on how many companies can leverage Bitcoin assets. With 400 million companies worldwide, the market should not saturate with just 200 adopters, he argues.

Progress in Regulation and Infrastructure: Completion of Financial System Integration

The hallmark of 2025’s progress is the rapid response of regulators and financial infrastructure. Key developments include:

• Regulatory Recognition: Governments officially recognize Bitcoin as the world’s leading and largest digital commodity.
• Banking Integration: The Treasury Department hints at a positive stance toward including cryptocurrencies in bank balance sheets.
• Market Infrastructure: The commercialization of derivatives markets at CME, and the introduction of physical exchange mechanisms between IBIT (Bitcoin ETF) and BTC, enabling tax-free exchanges of Bitcoin worth $1 million and IBIT.
• Supervisory Support: CFTC Chairman and SEC Chairman express support for Bitcoin and cryptocurrencies.

These changes collectively demonstrate that Bitcoin has completed its integration into mainstream financial systems and has gained institutional legitimacy.

Short-term Price Predictions Are Meaningless: A Shift from 4-Year Cycles to Long-term Perspectives

Saylor criticizes excessive focus on short-term price fluctuations. Despite Bitcoin reaching an all-time high 95 days ago, the widespread disappointment over minor price declines reveals a misunderstanding of Bitcoin’s philosophy.

Looking at the history of ideological movements over the past 10,000 years, those dedicated to something typically evaluate success over a decade-long timeframe. The question of what significance 90-day or 180-day price forecasts hold suggests that Bitcoin investors should shift from a 4-year cycle to a long-term perspective.

Evaluated with the 4-year moving average, Bitcoin’s trend remains extremely bullish, and the recent 90-day price declines presented excellent buying opportunities for foresighted investors. In other words, instead of waiting for short-term surges, the current phase should be viewed as part of building toward long-term growth.

MicroStrategy’s Vision: Developing a Bitcoin-Backed Digital Lending Market

Saylor’s concept of “digital credit” refers to the next-generation financial markets that MicroStrategy is pursuing. The company aims to leverage dollar reserves to enhance corporate creditworthiness and build a Bitcoin-collateralized lending market.

The ideal financial product, according to Saylor, would offer a 10% dividend yield and stability as a publicly traded company. If they can capture 10% of the US Treasury market, the market size would reach $10 trillion.

The reason for avoiding traditional banking is to maintain focus and avoid competition with customers. Instead, the strategy is to develop areas that traditional digital credit markets do not cover, such as senior credit, corporate credit, and Bitcoin-backed derivatives.

In other words, MicroStrategy envisions transforming from a mere asset-holding company into an infrastructure provider for the digital financial system. This progress is expected to become more pronounced after 2026, but assessments should be made from a multi-year long-term perspective.