"The time has come for self-reflection" Michael Saylor discusses institutional adoption of Bitcoin and the essence of capital

Strategy founder and chairman Michael Saylor discussed the institutional adoption of Bitcoin in a deep-dive interview on the podcast “What Bitcoin Did.” While many people are caught up in short-term price fluctuations, he emphasizes the importance of “self-reflection.” He states that throughout 2025, Bitcoin’s fundamentals have been evolving at an unexpectedly rapid pace.

By 2025, Bitcoin Achieved a “Institutional Victory”

Focusing solely on short-term prices can obscure the true progress of Bitcoin. Saylor points out that what institutional adoption has brought is not just corporate portfolio diversification but a transformation of the entire financial system.

Between 2024 and 2025, the number of companies holding Bitcoin on their balance sheets surged from 30–60 to approximately 200. This indicates that mainstream financial institutions are reclassifying Bitcoin from a “speculative asset” to a “strategic asset.” The pace of institutional adoption has far exceeded many analysts’ expectations.

Insurance, Accounting, and Regulation—Three Turning Points Causing Structural Change

For companies holding Bitcoin, 2025 was the year when the “regulatory environment changed dramatically.” Saylor shares his own experience of the elimination of previously insurmountable institutional barriers.

In 2020, when Strategy first purchased Bitcoin, insurance companies immediately canceled their policies. Over the next four years, the company had to allocate hundreds of millions of dollars in insurance premiums from personal assets. However, by 2025, this situation was completely reversed. Not only was insurance coverage restored, but the introduction of fair value accounting also resolved tax issues related to unrealized capital gains.

Furthermore, the U.S. Department of the Treasury issued positive guidance regarding banks holding crypto assets on their balance sheets, and the chairmen of the CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) expressed support for Bitcoin. These are not just “signals” but suggest a structural acceptance of Bitcoin within the entire financial system.

Banks Take Action. U.S. Financial Institutions Enter the Bitcoin Collateral Lending Market

The most symbolic example of this institutional shift is the rapid expansion of Bitcoin lending by banks.

At the beginning of the year, even with $1 billion in Bitcoin as collateral, it was impossible to secure even a 5-cent loan. By the end of 2025, nearly all major U.S. banks had begun offering loans collateralized by IBIT (Strategy’s physical Bitcoin ETF), and about a quarter of banks announced plans for direct Bitcoin collateralized loans. JPMorgan Chase and Morgan Stanley are also discussing Bitcoin trading and processing.

This shift signifies that Bitcoin has moved from being a “risk asset” to a “systemically important asset.” The commercialization of derivatives on CME (Chicago Mercantile Exchange), the introduction of physical issuance and redemption mechanisms between IBIT and Bitcoin, all symbolize the maturing of market infrastructure.

“The Era of Digital Capital”—Why Companies Holding Bitcoin Make Sense

A question arises: if over 200 companies buy Bitcoin, can the market handle it? Saylor offers a sharp rebuttal.

There are approximately 400 million companies worldwide. Why should we worry about market saturation when only 200 companies are buying Bitcoin? The real question should be, “Why can’t all companies buy Bitcoin?”

Looking at the value creation mechanism of Bitcoin-holding companies, its rationality is clear. For example, a company losing $10 million annually could hold $100 million in Bitcoin, generating $30 million in capital gains, thereby significantly increasing its value. The criticism should not be directed at “buying Bitcoin” but at “sustained losses.”

Saylor emphasizes that Bitcoin is a “universal capital” for the digital age. Just as electricity powers all machinery, Bitcoin plays an equivalent role in the digital economy. Holding Bitcoin is not speculation but a “rational action to improve productivity.”

Strategy’s Vision: The “Digital Credit” Market Supported by the Dollar Reserve and Bitcoin

What is particularly noteworthy is Strategy’s business strategy. Their policy of not entering banking may seem contradictory at first glance, but it is strategically profound.

Strategy aims to build a “digital credit” market. Using Bitcoin as capital and leveraging dollar reserves, they plan to enhance corporate creditworthiness and offer high-yield products that traditional financial markets cannot provide. Since credit investors seek low volatility, holding dollar reserves to boost product appeal is a highly rational strategy.

If they capture 10% of the U.S. Treasury market, the market size could reach $10 trillion. The digital credit market—encompassing senior credit, corporate credit, Bitcoin-collateralized derivatives, insurance products—has far greater potential than traditional credit markets. This industry is still in its infancy.

Time to Look Beyond Short-Term Prices and Focus on Structural Changes

A consistent message throughout the interview is that predicting prices 90 or 180 days ahead is meaningless. From the history of ideological movements over the past 10,000 years, those who sincerely engage tend to think in decade-long timeframes. Many people spend 10 years without success, only achieving success after 20 or 30 years. Regarding Bitcoin investments, it is far more meaningful to evaluate using a “4-year moving average” rather than short-term price fluctuations.

It is clear that the entire industry is moving in the right direction—networks, regulatory environments, banking systems. The recent 90-day price decline was actually a “perfect buying opportunity” for foresighted investors.

What is crucial is to verify your own judgment, reflect on yourself, and reassess. If Bitcoin’s fundamentals are so strong in 2026, why still cling to short-term prices? Recognizing structural changes and evaluating the industry’s evolution from a long-term perspective is the attitude investors should adopt.