The era of "maximization" in Bitcoin strategy—Michael Saylor discusses the institutional paradigm shift of 2025

Michael Saylor, founder and chairman of MicroStrategy, appeared on the “What Bitcoin Did” podcast, emphasizing that Bitcoin’s fundamental victory lies not in short-term price fluctuations but in the underlying institutional adoption. The simultaneous large-scale acceptance by institutional investors and the development of regulatory frameworks from 2025 to 2026 symbolize this shift. Saylor positions this moment as a “historic leap forward” for Bitcoin and related companies, explaining his reasoning across multiple dimensions.

True Victory from Institutional Adoption

Saylor points out that the most significant development for Bitcoin in 2025 is not its price but the building of foundational infrastructure. The number of companies holding Bitcoin on their balance sheets, increasing from 30–60 in 2024 to about 200 by the end of 2025, is not just a statistic but suggests an acceleration in Bitcoin acceptance.

The “institutional adoption” Saylor emphasizes involves multiple layers. First, the revival of insurance fills a four-year gap. He recounted his experience in 2020 when, after purchasing Bitcoin, he was contractually terminated by an insurance company. The situation where companies must cover their assets with insurance reflects market concerns about corporate Bitcoin holdings. The reversal of this situation in 2025, with insurance coverage restored, signifies a structural shift in risk assessment.

Changes in accounting standards are equally important. The introduction of fair value accounting allows companies to recognize unrealized capital gains as profits. Moving from a situation where companies struggled to offset losses with Bitcoin holdings to clear profit recognition marks a significant shift. Simultaneously, official recognition by governments of Bitcoin as a “major digital commodity” goes beyond mere symbolism.

Integration into the banking system is perhaps the most practical transformation. At the start of the year, a $100 million Bitcoin collateral could only secure a 5-cent loan, but by the end of 2025, most major US banks will begin offering loans backed by IBIT (Bitcoin ETFs), with about a quarter planning to offer BTC-collateralized loans. JPMorgan Chase and Morgan Stanley have begun discussions on Bitcoin trading and processing.

Furthermore, in terms of market infrastructure, the commercialization of derivatives markets on CME and the introduction of a tax-free exchange mechanism between $1 million worth of Bitcoin and IBIT have significantly lowered barriers for large institutional entry. The proactive stance of the Treasury and regulators (CFTC, SEC) supports these developments.

Saylor states that when these elements are integrated, “all the necessary components for asset commercialization, globalization, and institutionalization are in place.” The completion of these foundational developments, rather than short-term price movements, is the true victory in Bitcoin adoption.

Shifting from Short-term Thinking to Long-term Strategy

When podcast host Danny Nowels questioned the short-term price fluctuations of Bitcoin, Saylor maintained a consistent stance: “Predicting 100-day market trends is futile, and Bitcoin’s philosophy should be to lower time preference.”

He offers a historical perspective: looking at the history of ideological movements over the past 10,000 years, many successful cases took more than ten years. The idea that success can be judged in ten weeks or ten months is fundamentally flawed, and this critique also reflects skepticism toward current market psychology.

Regarding the four-year cycle, Saylor notes that evaluating with a four-year moving average shows a “quite bullish trend,” emphasizing the futility of reacting to short-term price swings. Conversely, viewing the past 90 days as an opportunity for forward-looking investors to buy more Bitcoin reframes short-term declines as long-term accumulation opportunities.

Saylor’s argument converges on the idea that market participants should clearly distinguish between short-term and long-term timeframes. The principle that value should be based on a company’s operational fundamentals applies equally to digital assets like Bitcoin. Instead of focusing on short-term market trends, investors should consider the direction of changes over a decade.

Redefining Bitcoin as “Universal Capital in the Digital Age”

Saylor frames Bitcoin not merely as an investment product but as a societal infrastructure. His analogy: “Bitcoin is universal capital in the digital age, like a factory that owns power infrastructure,” underscores the importance of differentiating Bitcoin holdings from speculation.

In response to criticism of corporate Bitcoin purchases, Saylor presents a logical rebuttal: why criticize a company that, despite losing $10 million annually, holds $100 million worth of Bitcoin on its balance sheet and has generated $30 million in capital gains? The criticism should focus on ongoing losses, shifting the debate away from Bitcoin adoption itself.

When Danny expressed concern about whether the market could handle over 200 companies purchasing Bitcoin, Saylor’s reply was concise and powerful: “There are 400 million companies on Earth, so why is 200 a problem?” This reframes the scale of the market and challenges assumptions about capacity.

Saylor argues that the core of criticism is essentially “criticizing companies that make rational decisions.” Just as electricity is a universal capital powering all machinery, Bitcoin, if recognized as a universal capital in the digital era, will inevitably see widespread adoption.

The Potential of MicroStrategy’s “Digital Credit” Market

Saylor explicitly states that MicroStrategy’s strategic direction involves building a “digital credit” market backed by Bitcoin as a capital base. “MicroStrategy is not a bank but aims to leverage dollar reserves to develop a digital credit business that enhances corporate creditworthiness,” indicating a new business model beyond just being a Bitcoin company.

The theoretical market size is enormous. If it captures 10% of the US Treasury bond market, it could reach $10 trillion, demonstrating the potential of the digital credit market. Additionally, the vastness of the senior credit and corporate credit markets suggests that the current financial system is far from saturated.

Regarding untapped areas like Bitcoin-backed derivatives markets, exchanges, and insurance companies, Saylor notes, “There are zero insurance companies worldwide using Bitcoin as collateral or capital,” indicating that the market is still in its early stages.

He cites the reasons for holding dollar reserves: improving corporate creditworthiness and enhancing image among credit investors. While equity investors seek higher volatility, credit investors prefer the most creditworthy assets. Holding dollar reserves to improve product appeal is a strategic move to become the leading player in the digital credit space.

The Essence of Corporate Value and Future Investment Potential

Saylor emphasizes that the ultimate principle is related to the core of corporate value: “Companies exist to create value, and that value should be based on business operations.” While seemingly obvious, this principle diverges from current MicroStrategy valuation.

He points out that stock value depends not only on how the capital is utilized “now” but also on “what will be done in the future.” This broadens investor perspectives. For example, if a company can sell credit products at a 6% yield when others only offer 2% in Japan, it raises the question: “Is this perhaps the most valuable company in Japan?” This challenges current market valuations.

Saylor’s logical framework is clear: with the foundation of digital capital established, regulatory environments in place, and large-scale institutional investment underway, building a business model that maximizes this potential leads to true value creation. The institutional adoption of Bitcoin has only just begun, and the scale of the digital credit market built upon it holds the potential to surpass current expectations.