Saylor's View of the 2025 Fundamentals Victory: How to Drive Breakthroughs in Credit Investment in the Digital Asset Space

In a recent podcast interview, MicroStrategy founder and CEO Michael Saylor systematically elaborated on the institutional recognition of Bitcoin by 2025 and the improvement of financial infrastructure. In his view, the true progress of Bitcoin is not reflected in short-term price fluctuations, but in breakthroughs across multiple dimensions such as insurance recovery, banking credit acceptance, and clear tax policies — these changes are opening up new market spaces for credit investments backed by Bitcoin.

2025: Multiple Policy Breakthroughs Drive Fundamental Improvements

2025 is expected to be a “harvest year” for Bitcoin. According to Saylor, approximately 30 to 60 companies held Bitcoin on their balance sheets in 2024, and by the end of 2025, this number will have increased to about 200, a growth of over three times. But the policy-level changes behind these numbers are even more critical.

The recovery of insurance policies is the first breakthrough. Saylor recalls that when MicroStrategy bought Bitcoin in 2020, insurance companies immediately terminated their coverage. For four years, even if the company held Bitcoin assets worth $20 billion to $40 billion on its balance sheet, it could not obtain a $40 million policy. This situation was completely changed in 2025 — mainstream insurance companies reopened underwriting for companies holding Bitcoin.

The shift in accounting treatment further strengthened institutional recognition. In 2025, regulators approved listed companies to use fair value accounting methods for Bitcoin assets, allowing them to finally record capital gains on their financial statements. Meanwhile, government departments provided clear guidance on a long-standing issue for enterprises — whether listed companies holding Bitcoin need to pay unrealized capital gains tax — eliminating this policy uncertainty.

The attitude shift in the banking system is the most notable. At the beginning of the year, holding Bitcoin assets worth one billion dollars could hardly secure any loans. But by the end of 2025, most major US banks had begun accepting IBIT (Bitcoin spot ETF) as collateral for lending, with about a quarter of these banks announcing plans to directly use BTC as collateral for credit investments. By 2026, investment banks like JPMorgan Chase and Morgan Stanley also started discussing Bitcoin buying, selling, and trading.

Regulatory coordination is progressing in tandem. The US Treasury proposed positive guidance on including crypto assets in bank balance sheets; CFTC and SEC chairpersons both expressed support for Bitcoin and cryptocurrencies; and the Bitcoin derivatives market on the Chicago Mercantile Exchange (CME) has also achieved commercialization. More notably, the Bitcoin spot ETF has established a complete creation and redemption mechanism — investors can seamlessly exchange $100 million worth of Bitcoin for an equivalent IBIT, and vice versa, without any tax implications.

Short-term Price Fluctuations vs. Long-term Trends: Changing the Evaluation Cycle is Key

When asked about the price trend in 2026, Saylor gave an unexpected answer: there is no point in predicting.

He emphasized that Bitcoin just hit a new all-time high 95 days ago, and short-term price adjustments are merely buying opportunities for long-term investors. Obsessing over 100-day or 180-day price trends is a flawed time preference. He pointed out that historically, any ideological movement takes ten years to advance, and some even require 20 years to succeed. If the goal is to commercialize and institutionalize Bitcoin, then progress should not be evaluated in weeks or months.

Looking at Bitcoin’s performance with a four-year moving average reveals a quite bullish long-term trend. 2026 will be a significant year for Bitcoin, but this is not based on short-term price predictions, rather on confidence in the continuous improvement of fundamentals. For investors who can see the bigger picture, the price fluctuations over the past 90 days are just opportunities to accumulate more Bitcoin.

Corporate Treasury Reserves Are Not Saturated: 400 Million Companies Worldwide Are Potential Participants

Regarding the phenomenon of numerous treasury companies emerging, Saylor presented a strong argument: the market is far from saturated.

When asked whether he worries that the market cannot accommodate over 200 companies buying Bitcoin, he asked back: “There are 400 million companies in the world, why do you think only 10 can buy Bitcoin? Why can’t all 400 million companies buy Bitcoin?” He pointed out that treasury strategies are meaningful for different types of enterprises — loss-making companies can improve their balance sheets by holding Bitcoin; profitable companies can amplify investment returns.

For example, a company losing $10 million annually, if it holds $100 million worth of Bitcoin on its balance sheet and realizes $30 million in capital gains, should the overall performance of that company really be criticized? The answer is clearly no.

Saylor further compares Bitcoin to power infrastructure. Companies hold power systems to increase productivity, and Bitcoin is the “general-purpose capital” of the digital age. It is not a speculative asset but a productivity tool like a factory holding electricity. Any enterprise can and should include it as part of their asset allocation.

The key issue is not whether companies buy Bitcoin, but whether their core operations are continuously loss-making. Criticizing the act of buying Bitcoin is missing the point; the real concern should be the financial performance of the enterprise itself.

Strategy Shifts to Digital Credit: Using US Dollar Reserves to Enhance Financial Credibility

When asked why MicroStrategy does not directly become a bank, Saylor explained the company’s strategic positioning — focusing on becoming the world’s best digital credit provider.

He pointed out that Bitcoin is digital capital, and Strategy is digital credit. The market potential is enormous. If Strategy can capture 10% of the global sovereign debt and credit markets, the total potential market size could reach $10 trillion. Instead of expanding into banking and dispersing attention, it is better to deepen digital credit products — creating publicly traded products with a 10% dividend yield and a book value ratio of about 1 to 2.

Under this strategy, accumulating US dollar reserves aims primarily to enhance the company’s credibility. Saylor explained that investors in digital credit typically find Bitcoin and stocks too volatile. Stock investors pursue high volatility and more Bitcoin exposure, while credit investors demand the highest asset credibility. Holding sufficient US dollar reserves can project a stable image to credit investors, making digital credit products more attractive.

From a product perspective, the future market is broad. Derivative businesses backed by Bitcoin could outperform traditional derivatives; Bitcoin-collateralized exchanges could surpass ordinary exchanges; and insurance companies based on Bitcoin capital are almost nonexistent — no insurance company worldwide currently uses Bitcoin as primary collateral or capital source. These represent vast untapped markets.

Current BTC trading data for reference: According to the latest quotes, Bitcoin is trading at approximately $88,390, still below its all-time high of $126,080. This price range itself validates Saylor’s point that “fundamental optimization and price fluctuations are opportunities” — such adjustments provide better entry points for institutions and enterprises to allocate credit investments.

The integration of digital assets and credit investments has just begun, and the digital credit ecosystem MicroStrategy is trying to build in this emerging field could change how the financial market utilizes Bitcoin assets, further driving the industry toward greater maturity and standardization.