The Bitcoin market begins to be embraced in 2025: Strategy founder discusses the full picture of institutional transformation

Strategy founder and chairman Michael Saylor’s latest market analysis, shared on the “What Bitcoin Did” podcast, suggests that 2025 is not just a year of price appreciation but a pivotal turning point where institutional and infrastructural adoption of Bitcoin truly accelerates within the community. Saylor’s view that fundamental changes deep within the financial system, rather than short-term price fluctuations, symbolize Bitcoin’s true victory reflects the overall maturity of the industry.

Accelerated Institutional Adoption: 200 Companies Adding Virtual Assets to Their Balance Sheets

The most notable change in 2025 is the rapid adoption of Bitcoin by institutional investors and corporations. By the end of 2024, the number of companies holding Bitcoin on their balance sheets was around 30 to 60, but by the end of 2025, this number dramatically increased to approximately 200. This indicates that Bitcoin acceptance has moved beyond individual investors and is beginning to be integrated into corporate financial strategies.

As Saylor emphasizes, the expansion of Bitcoin holdings is not speculative but a rational move to improve corporate productivity. For example, a company losing $10 million annually could generate $30 million in capital gains by holding $100 million worth of Bitcoin on its balance sheet, making this strategy justifiable even for unprofitable companies. Saylor himself recounts experiencing difficulties in 2020 when a insurance company canceled his policy after he purchased Bitcoin, and he had to continue insuring his personal assets for four years afterward.

In Other Words, “Power in the Digital Age”: Redefining the Definition of Bitcoin

Understanding Bitcoin’s essence is crucial, and Saylor’s new perspective is highly significant. Traditionally, Bitcoin has been described as a speculative asset or “digital gold,” but Saylor redefines it as “a universal capital of the digital age.” The intent behind this redefinition is to position Bitcoin not merely as a medium of exchange but as a foundational infrastructure necessary for all companies and households.

Just as electricity is a universal capital powering all machinery in factories, Bitcoin is beginning to serve the same role in the digital economy. This conceptual shift necessitates a fundamental rephrasing of criticisms against Bitcoin-holding companies. In fact, the real issue may not be purchasing Bitcoin itself but rather the problem of companies that choose not to buy it—potentially a poor managerial decision. There are about 400 million companies worldwide, yet only around 200 have adopted Bitcoin, which demonstrates that the market is still in the early stages of acceptance.

Completion of the Institutional Foundation: Dramatic Advances in Insurance, Accounting, and Regulation

The institutional transformation in 2025 is not limited to increased corporate participation. The foundational infrastructure for Bitcoin’s formal acceptance has been established within the core of the financial system, including insurance markets, accounting standards, and regulatory environments.

First, in insurance, there was a dramatic revival from the complete exclusion in 2020 to full acceptance by 2025. As Saylor notes, companies holding Bitcoin were previously excluded from insurance coverage, but this situation has reversed by 2025. On the accounting front, the adoption of fair value accounting allows companies holding Bitcoin to recognize unrealized capital gains as profit. This change enabled Strategy, led by Saylor, to turn profitable for the first time.

A further significant shift is the official acceptance of Bitcoin by government authorities. The U.S. Department of the Treasury issued positive guidance on including crypto assets on bank balance sheets, and the chairs of the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) expressed support for Bitcoin, indicating a fundamental change in the regulatory environment.

Integration with the Banking System: Major U.S. Banks Launch Bitcoin-Backed Lending

The most concrete manifestation of institutional acceptance is the implementation of Bitcoin-backed lending by major U.S. banks. By the end of 2024, the situation where only $0.05 of lending could be obtained against $1 billion worth of Bitcoin at the start of the year has shifted significantly by the end of 2025. Most major U.S. banks have begun offering loans collateralized with IBIT, and about a quarter of banks are planning to launch direct Bitcoin collateralized lending programs. Furthermore, early 2026 sees JPMorgan Chase and Morgan Stanley advancing discussions on Bitcoin trading and settlement services.

This shift signifies that Bitcoin has moved from being an external asset outside the banking system to an internal collateral asset, representing a revolutionary change in financial infrastructure integration.

Market Infrastructure Matures: Introduction of Derivatives and Tax-Exempt Swap Mechanisms

A key factor accelerating Bitcoin adoption is the rapid maturation of market infrastructure. The Chicago Mercantile Exchange (CME) has commercialized Bitcoin derivatives markets, and a tax-exempt swap mechanism between $1 million worth of Bitcoin and $1 million worth of IBIT (Bitcoin ETF) has been introduced. This physical issuance and redemption mechanism enhances liquidity between digital assets and traditional financial products, significantly improving market efficiency.

Short-term Price Predictions Are Meaningless: Long-term Perspective and Industry’s Correct Direction

When evaluating Bitcoin’s current position, Saylor consistently emphasizes that excessive focus on short-term price fluctuations misleads market participants. The phenomenon where Bitcoin hits a new high 95 days ago but then experiences a price decline within a few days illustrates the market’s short-term focus. In other words, the intrinsic value creation process of Bitcoin and its short-term supply-demand-driven price volatility should be viewed separately.

Looking back at historical ideological movements, those committed to something have typically aimed for success over a 10-year horizon. If Bitcoin’s commercialization is the true goal, it should not be evaluated over short spans like 10 weeks or 10 months but rather through multi-year moving averages to analyze trends. Predicting price movements in 2026 is essentially meaningless; instead, assessing whether the industry is progressing in the right direction and whether the network remains robust is more important. The past 90 days of price declines have actually presented buying opportunities for foresighted investors.

Entry into the Digital Credit Market: Strategy’s $10 Trillion Market Strategy

The reason Strategy has chosen not to enter banking but to focus on the digital credit market is due to its enormous market size. According to Saylor’s estimates, the potential market for digital credit products is about $10 trillion. Gaining just 10% of the U.S. Treasury bond market would amount to a $10 trillion market, which remains largely untapped.

Strategy aims to build a digital credit market that uses Bitcoin as digital capital and leverages dollar reserves to issue senior credit products. Compared to traditional senior credit and corporate credit markets, new fields such as Bitcoin-collateralized derivatives and Bitcoin-collateralized exchanges have the potential for growth far exceeding their respective markets. Interestingly, there are currently no insurance companies worldwide utilizing Bitcoin as collateral or capital, creating a vacuum that presents endless opportunities for Strategy’s new business development.

The reason Strategy is increasing dollar reserves is to enhance the credibility of credit investors. Equity investors benefit from Bitcoin’s high volatility, but credit investors seek the most creditworthy assets. To become a major player in the digital credit field, improving corporate creditworthiness is essential, and dollar reserves serve as a visible mechanism to demonstrate that creditworthiness.

Conclusion: Accelerated Adoption Signaling a New Stage in the Market

The institutional and infrastructural shifts witnessed in 2025 suggest that Bitcoin is beginning to be accepted as more than a commodity—it’s moving toward becoming a financial infrastructure. The revival in insurance, acceptance of accounting standards, integration with the banking system, and support from regulators collectively indicate that Bitcoin is steadily being incorporated into the financial system.

The expansion of corporate adoption led by companies like Strategy is part of this acceptance trend, and pioneering the digital credit market will likely define the next growth phase. The market is shifting away from reacting to short-term price fluctuations and toward valuing the solidification of institutional infrastructure.