Mr. Saylor discusses Bitcoin's institutional victory—fundamentals remain strong, and the shift towards digital capital is accelerating

Mr. Michael Saylor (Founder and Chairman of Strategy) emphasized on the “What Bitcoin Did” podcast that it is time to focus on the fundamental progress of Bitcoin’s institutionalization rather than short-term price fluctuations. As of 2026, the Bitcoin market is at a historic turning point driven by regulatory approval, banking consolidation, and corporate adoption. To summarize Mr. Saylor’s argument, the current strong fundamentals are supported by an unprecedented multi-layered support structure.

Accelerating Institutional Adoption—Corporate Balance Sheet Strategies Take Hold

The first point Mr. Saylor highlighted was the explosive increase in the number of companies holding Bitcoin. The projection that the number would grow from 30–60 companies in 2024 to around 200 within a year signifies more than just numerical growth; it symbolizes Bitcoin adoption shifting from an “exception” to a “standard management strategy.”

This change is underpinned by a series of institutional breakthroughs in 2025. First, insurance coverage was restored. When Mr. Saylor purchased Bitcoin in 2020, insurance companies could unilaterally cancel policies, requiring companies to cover personal assets for four years. This situation reversed in 2025, with insurers beginning to offer products targeting Bitcoin-holding companies, marking a major institutional milestone.

Additionally, the introduction of fair value accounting enabled publicly traded companies to recognize gains from Bitcoin holdings. Previously hindered by unrealized capital gains taxes, companies can now justify their holdings on their financial statements. For example, even a loss-making company with a $10 million annual loss can improve its balance sheet if it generates a $30 million gain from $100 million worth of Bitcoin assets.

Dramatic Shift in Regulatory Environment—Governments and Mega Banks Respond to Bitcoin

The most direct proof of the strong fundamentals is the rapid change in attitude among regulators and financial institutions. The official recognition of Bitcoin as “the world’s leading and largest digital commodity” by governments has swiftly opened the path for financial system integration.

According to Mr. Saylor, at the start of the year, borrowing only a few cents against $1 billion worth of Bitcoin was possible. By the end of the year, most major US banks had begun offering loans collateralized by IBIT (Bitcoin ETF), and about a quarter of banks planned to offer direct Bitcoin collateral loans. By early 2026, JPMorgan Chase and Morgan Stanley are in discussions to implement Bitcoin trading and processing functions.

The Ministry of Finance also issued positive guidelines regarding banks holding Bitcoin, and the chairs of the CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) expressed support. The Chicago Mercantile Exchange (CME) is advancing the commercialization of Bitcoin derivatives, and a significant mechanism—tax-free exchanges between $1 million worth of Bitcoin and IBIT—has been introduced. These are concrete signs that “digital assets have been integrated into traditional financial infrastructure.”

Short-term Price Fluctuations Are Meaningless—A Shift Toward Long-term Perspective Is Urgent

When Danny Nowels expressed concern that current prices are lower than last year, Mr. Saylor clearly called for a reframing of the argument. “Reacting emotionally to short-term price swings is to lose sight of Bitcoin’s true nature,” he said.

From Mr. Saylor’s perspective, the fact that Bitcoin hit an all-time high 95 days ago but then declined within a few days is purely speculative thinking. He cited successful examples of historic ideological movements and mentioned that genuine transformation requires a time horizon of a decade. More important than short-term market psychology is the clear “bullish trend” seen when looking at the 4-year moving average.

Bitcoin market valuation should be assessed over years, not 90 or 180 days. The recent 95-day decline, according to Mr. Saylor, was an “excellent opportunity for foresightful investors to buy more.”

Reframing Criticism of Bitcoin-Holding Companies—From Pure Financial Strategy to Productivity Tools

In response to criticism of companies holding Bitcoin, Mr. Saylor offered a fundamental reframing: “These are not just speculative firms but are like factories with power infrastructure,” he said.

Just as electricity is a universal capital powering all machinery, Bitcoin is positioned as a universal capital of the digital age. This shifts the perception of corporate Bitcoin holdings from “profit-making opportunities” to “tools for enhancing productivity.”

Mr. Saylor pointed out that it is unreasonable to worry about market saturation when only about 200 companies out of 400 million worldwide are purchasing Bitcoin. The real question is “how many companies can buy Bitcoin,” which itself suggests the potential for industry growth.

He also argued that the real critique should not be about companies buying Bitcoin but about the strategic lack of decision-making by unprofitable companies that choose not to buy.

Strategy’s Digital Credit Strategy—Bitcoin Capital and the Dollar Reserve Structure

When asked about Strategy’s own strategy, Mr. Saylor clarified that the company aims to build a “digital credit” business rather than a “banking” business. The goal is to develop an ideal listed product (with a 10% dividend yield and a Book-to-Market ratio of 1–2 times) based on the STRC (Strake Digital Credit) offering.

According to Mr. Saylor, capturing 10% of the US Treasury market could result in a potential market size of $10 trillion. This market remains unsaturated even in traditional financial sectors like senior credit, corporate credit, and derivatives. Furthermore, since there are no Bitcoin-collateralized insurance companies on Earth, there is enormous unexplored growth potential in this industry, he argues.

Holding dollar reserves is aimed at ensuring “stability” sought by credit investors. While equity investors seek Bitcoin’s volatility, credit investors prefer the most creditworthy assets. To become a leader in the digital credit space, it is strategic to leverage Bitcoin capital while visualizing the fundamentals’ strength through dollar reserves.

Mr. Saylor stated, “The value of a business company’s stock depends not only on current capital utilization but also on what it will do in the future,” explaining that Strategy does not enter banking to “maintain focus.” Instead, it avoids competing with customers and aims to build the world’s best digital credit products, thereby realizing the “true vision” of transforming currency, banking, and credit markets—this is the core of his long-term strategy.