Michael Saylor discusses the institutional progress of Bitcoin adoption: in simple terms, "Towards the era of digital capital"

MicroStrategy founder and Chairman Michael Saylor recently stated in an interview on the “What Bitcoin Did” podcast that the true measure of Bitcoin’s success lies not in short-term price fluctuations but in the acceleration of institutional and foundational adoption. He suggests that 2025 will mark a historic turning point in the cryptocurrency market from three perspectives: policy, market infrastructure, and corporate adoption.

What Saylor emphasizes is that the fundamental change is more important than superficial numbers. The dramatic shift in Bitcoin’s position within the financial system holds significance far beyond short-term volatility.

Accelerating Institutional Adoption: Over 200 Companies Adopt Bitcoin as a Strategic Asset

The increase in companies adopting Bitcoin indicates a fundamental shift in corporate financial strategies, rather than mere speculative trends. According to Saylor, while in 2024 around 30 to 60 companies held Bitcoin on their balance sheets, by the end of 2025, this number is expected to reach approximately 200.

This trend is driven by several institutional factors. First, the revival of insurance coverage is notable. Saylor himself was contractually excluded from insurance companies when he purchased Bitcoin in 2020, and for four years had to continue insuring the company with personal assets. The reinstatement of insurance signifies regulatory approval.

Second, the introduction of fair value accounting has enabled companies to recognize profits. The longstanding issue of unrealized capital gains taxes faced by companies was resolved in 2025 through proactive government guidance. For example, a company recording a $10 million annual loss could, if holding $100 million worth of Bitcoin on its balance sheet, generate $30 million in capital gains. This is a direct result of rational management decisions enabled by Bitcoin adoption.

Major Policy Shifts in 2025: Revival of Insurance and Bank Consolidation Significance

Behind these institutional advances is a shift in attitude by government and financial regulators. In 2025, Bitcoin was officially recognized by the U.S. government as the world’s leading and largest digital commodity. This policy shift is more than symbolic.

Major U.S. banks announced plans to start Bitcoin-collateralized lending. At the beginning of the year, it was impossible to obtain even 5 cents of a loan secured by $1 billion worth of Bitcoin, but by year’s end, nearly all major banks had begun offering loans collateralized by IBIT (Bitcoin spot ETF), and about a quarter of banks were planning to offer direct Bitcoin collateralized loans. JPMorgan Chase and Morgan Stanley are discussing Bitcoin trading and processing.

The U.S. Treasury Department also issued positive guidance on integrating cryptocurrencies into bank balance sheets, and the heads of the CFTC and SEC expressed support for Bitcoin.

Market infrastructure is also maturing. The Chicago Mercantile Exchange (CME) accelerated commercialization of Bitcoin derivatives, introducing a tax-free physical exchange mechanism between $1 million worth of Bitcoin and $1 million worth of IBIT.

Long-term Strategy Beyond Short-term Price Fluctuations: Investment Philosophy Focused on Fundamentals

Saylor repeatedly emphasizes that short-term price forecasts over 100 or 180 days are fundamentally meaningless. Despite Bitcoin reaching new highs 95 days ago, market participants are reacting emotionally to recent short-term price movements. This, he argues, is a fundamental misunderstanding of Bitcoin philosophy.

The true Bitcoin philosophy involves maintaining a “low time preference.” Historically, achieving significant results in ideological movements often takes a decade, and many cases take 20 or 30 years to succeed. If the goal is the commercialization of Bitcoin, evaluating it over weeks or months is inappropriate.

Evaluating Bitcoin’s performance using the 4-year moving average reveals a strongly bullish trend. Even a 90-day decline in price, according to Saylor, presents an excellent opportunity for foresighted investors to buy more Bitcoin.

Bitcoin as the “Universal Capital of the Digital Age”: Countering Criticism of Corporate Adoption

Saylor strongly disputes criticisms of Bitcoin-adopting companies. His position is that corporate Bitcoin purchases are not mere speculation but strategic investments aimed at improving productivity.

Just as power infrastructure is a universal capital supporting factories, Bitcoin is a universal capital in the digital age. For unprofitable companies, it can serve as a means to improve their balance sheets. For profitable companies, it can be a tool to increase revenue. Saylor argues that the focus should not be on whether companies adopt Bitcoin but on the judgment of those that choose not to.

The criticism is centered on the idea that companies should be in a situation where they are not continuously incurring losses while holding Bitcoin.

Regarding concerns about market size, Saylor questions why the market would saturate with just 200 companies adopting Bitcoin when there are approximately 400 million companies worldwide. There is ample room for all global companies to adopt Bitcoin, and the current situation is merely in the very early stages of the market.

The True Business of Strategy: Ambitious Expansion into the Digital Credit Market

When explaining Strategy’s strategy, Saylor repeatedly emphasizes that he has no interest in banking. This is because the digital credit business can theoretically expand almost infinitely.

Strategy aims to develop digital credit products that leverage dollar reserves to enhance corporate creditworthiness. These are designed as listed products with a 10% dividend yield and valuation multiples of 1-2 times. If they can capture 10% of the U.S. Treasury market, the potential market size could reach $10 trillion.

The reason this business model differs from banking is focus and maintaining competitiveness. Managing banks simultaneously would lead to the most foolish strategy: competing with customers. Instead, focusing solely on creating the world’s best digital credit products preserves innovation and market competitiveness.

Accumulating dollar reserves is intended to strengthen creditworthiness for credit investors. While equity investors seek volatility, credit investors demand the highest level of creditworthiness. To become the largest player in digital credit, companies must enhance their own credit strength, and holding dollar reserves is a means to that end.

Saylor’s overarching message is that Bitcoin is evolving from a mere investment asset into a form of capital underpinning the financial system. This transformation can only be properly evaluated over a long-term horizon of 10 years, not through short-term price predictions.