A fundamental shift in Bitcoin adoption—2025 proves the victory of institutionalization

Michael Saylor, founder and chairman of Strategy, emphasized in an interview on the “What Bitcoin Did” podcast that the true value of Bitcoin lies not in short-term price fluctuations but in the fundamental structural changes across finance, accounting, and regulation. In other words, 2025 was not just a year of price appreciation but a turning point toward institutionalization.

Institutional Acceptance and the Challenges of Financial Infrastructure

Once, Bitcoin was merely a speculative asset, but that changed dramatically in 2025. Companies holding Bitcoin on their balance sheets increased from about 30–60 in 2024 to approximately 200. This rapid expansion indicates that for companies, holding Bitcoin is no longer just an option but a strategic necessity.

The most important point Saylor emphasizes is the development of institutional infrastructure. First, changes in the insurance market are notable. When he purchased Bitcoin in 2020, insurance companies canceled their policies. Over the next four years, individuals bore the insurance burden, but in 2025, coverage was finally restored. This is not just product development; it signifies a fundamental shift where the financial system officially accepts Bitcoin.

Next, there are changes in accounting standards. The adoption of fair value accounting allows Bitcoin-holding companies to recognize unrealized capital gains as profit. Governments have provided positive guidance on this, effectively resolving the issue of unrealized gains tax. Furthermore, the U.S. Treasury Department has issued favorable guidelines regarding crypto asset holdings on bank balance sheets, and regulatory agencies (SEC, CFTC) have expressed support.

Integration with the banking system has also accelerated. At the start of the year, a $1 billion Bitcoin collateral loan could only secure a 5-cent loan, but by year-end, nearly all major U.S. banks had begun offering loans collateralized by IBIT (Bitcoin ETF), and about a quarter of banks announced plans to lend against BTC itself. Additionally, JPMorgan Chase and Morgan Stanley have begun discussions regarding Bitcoin trading and processing.

Long-term Perspective on Corporate Value and Sustainable Growth Strategies

When the host mentioned the short-term decline in Bitcoin prices during the interview, Saylor fundamentally disagreed. His stance is that “short-term price predictions are meaningless.” Despite Bitcoin reaching a new high 95 days ago, market participants are reacting emotionally to short-term fluctuations. He points out that this contradicts Bitcoin’s core philosophy of lowering time preference.

Historically, successful movements or ventures have typically taken a decade. Many also fail and require another 10 or 20 years. In other words, if the goal is to commercialize Bitcoin, judging success over 10 weeks or 10 months is inherently meaningless. What significance does evaluating price fluctuations in 2026 have?

Another perspective Saylor offers is evaluating Bitcoin using the four-year moving average. From this long-term view, Bitcoin’s performance shows an extremely bullish trend. The entire industry is progressing in the right direction, and the network is steadily maturing. In fact, the recent 90-day downturns could be seen as excellent opportunities for informed investors to increase their Bitcoin holdings.

Bitcoin as Digital Capital—Redefining Universal Value

Regarding corporate strategies for Bitcoin acquisition, Saylor clearly defends the approach. “All households and all companies should be able to buy Bitcoin,” he states. Even loss-making companies can improve their balance sheets through capital gains by holding Bitcoin. Profitable companies can see increased revenues.

He cites an example of a company that, despite losing $10 million annually, has generated $30 million in capital gains from $1 billion worth of Bitcoin. There is no basis to criticize such a company. Instead, he argues that the real issue is the ongoing losses themselves and that companies incurring losses but not holding Bitcoin are the ones to criticize.

Saylor compares Bitcoin-holding companies to “factories that own power infrastructure.” It’s not a speculative product but a fundamental tool for productivity enhancement. Just as electricity is a universal capital powering all machinery, Bitcoin is a universal capital in the digital age. This analogy is not just metaphorical but reflects an essential understanding of economic function.

Regarding market size, Saylor presents a rational perspective. There are 400 million companies worldwide, yet the market is not “saturated” with just 200–500 Bitcoin-holding firms. The real issue is what proportion of these 400 million companies will adopt Bitcoin and how enormous the potential market size is.

Strategy’s Vision for Digital Credit and Market Opportunities

Saylor’s strategic vision for Strategy is to build a “digital credit market,” not a banking system. The company’s ideal product is STRC (Strategic Deferred Digital Credit), a listed product with a 10% dividend yield and a book value of 1–2 times.

If they capture 10% of the U.S. Treasury bond market, it would amount to $10 trillion. The potential market size for this product is therefore enormous. Who would demand such a product? The answer is straightforward: anyone with a bank account capable of invoice payment.

The reason Strategy does not enter the banking industry is to maintain focus on developing the world’s best digital credit products. At the same time, Saylor emphasizes that competing with customers is the most foolish act. The fundamental division of roles—Bitcoin as digital capital and Strategy as digital credit—is key to success.

He also explained the strategic reason for accumulating dollar reserves. Buyers of credit products tend to overestimate the volatility of Bitcoin and stocks. Stock investors welcome high volatility, but credit investors seek the most creditworthy assets. To become a market leader in digital credit, holding dollar reserves to enhance corporate creditworthiness and increase product appeal is crucial.

The future Bitcoin market will transition to a new stage through the interaction of institutional acceptance and corporate strategies. What 2025 proved is a fundamental transformation in Bitcoin adoption. It is shifting from a mere speculative asset to a legitimate part of the financial system.