Interesting perspective: Rephrasing the essence of Bitcoin—Michael Saylor discusses Strategy's digital capital strategy

An interesting perspective on Bitcoin emerges from Michael Saylor’s latest interview. It emphasizes that the true victory lies not in short-term price fluctuations but in institutional approval and the development of foundational infrastructure. In other words, Bitcoin is no longer just a speculative asset but is evolving into a “universal capital of the digital age” that should be incorporated into corporate balance sheets.

Institutional Adoption as a Fundamental Turning Point—Balance Sheet Strategies Transform Corporate Value

From 2024 to 2025, the environment surrounding Bitcoin has changed dramatically. Saylor particularly highlights the rapid increase in the number of companies holding Bitcoin. Just a few years ago, there were about 30 to 60 companies, but by the end of 2025, that number is approaching nearly 200. This is not just an increase in numbers but a sign that institutional investors and mainstream companies are seriously implementing Bitcoin strategies.

Several institutional developments underpin this change. Notably, the revival of insurance coverage is crucial. When Saylor himself purchased Bitcoin in 2020, insurance companies canceled their policies. Over the next four years, companies faced burdens of insurance that were disproportionate to their size. By 2025, this situation finally improved, significantly reducing companies’ concerns about holding Bitcoin.

The introduction of fair value accounting, which has also advanced simultaneously, is equally important. Previously, when companies recognized capital gains from Bitcoin, they faced issues with taxing unrealized gains. Clear government guidance in 2025 resolved this problem, allowing Bitcoin-holding companies to recognize actual profits. Furthermore, the U.S. government officially recognized Bitcoin as one of the largest digital commodities worldwide.

Integration into Banking Systems—Financial Infrastructure Gains Momentum

Alongside institutional approval, integration into banking systems is progressing. At the beginning of the year, it was possible to borrow only about 5 cents against $1 billion worth of Bitcoin. By the end of 2025, almost all major U.S. banks will have launched lending products secured by IBIT (Bitcoin ETFs), and about a quarter of banks are planning direct Bitcoin collateral loans. By early 2026, major financial institutions like JPMorgan Chase and Morgan Stanley are beginning discussions on Bitcoin trading and processing, indicating a clear shift in attitude.

The U.S. Department of the Treasury has also issued positive guidance on incorporating cryptocurrencies into bank balance sheets. The heads of the CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) have publicly expressed support for Bitcoin. Market infrastructure is also maturing rapidly, with the CME (Chicago Mercantile Exchange) commercializing Bitcoin derivatives and introducing a tax-free exchange mechanism between Bitcoin worth $1 million and IBIT.

Short-term Predictions Are Meaningless; Focus on Strengthening Long-term Fundamentals

Saylor repeatedly emphasizes the futility of short-term price predictions. Despite Bitcoin reaching a new all-time high 95 days ago, critics are sharply criticizing the tendency to react emotionally to recent short-term fluctuations. Looking at historical ideological movements, true success typically takes a decade or more. If the goal is the commercialization of Bitcoin, evaluating success based on price fluctuations over about 100 days is fundamentally flawed.

Instead, attention should be paid to the bullish trend indicated by the four-year moving average. 2026 is expected to be an extremely important year for Bitcoin, but it is not necessary to predict prices 90 or 180 days ahead. The overall industry direction, network maturity, and opportunities to buy during correction phases like the past 90 days are what truly matter for long-term investors.

Bitcoin as Digital Capital—The Essence of New Corporate Strategies

An intriguing perspective Saylor emphasizes is how companies holding Bitcoin should approach it. There are cases where deficit companies hold Bitcoin on their balance sheets, leading to profit improvements through capital gains. For example, a company recording a $10 million loss can generate a $30 million gain from $100 million worth of Bitcoin, demonstrating that purchasing Bitcoin is a rational strategy.

Saylor asserts that criticism of companies buying Bitcoin is misguided. The real critique should be directed at companies that continue to incur losses while not holding Bitcoin. In other words, prudent adoption of Bitcoin by companies is akin to deploying productivity-enhancing tools like factories equipped with power infrastructure. If electricity is the universal digital capital powering all machinery, then Bitcoin is the universal capital of the digital age.

Regarding concerns about market size, Saylor provides a logical rebuttal. There are 400 million companies worldwide, and the market space capable of supporting Bitcoin purchases is also roughly 400 million. The concern that the market cannot absorb 200 Bitcoin-buying companies is irrelevant, as it involves only a tiny fraction of the 400 million companies. This logic suggests that there is enormous room for Bitcoin adoption over the coming centuries.

Digital Credit Strategy—Dollar Reserves and Corporate Creditworthiness

Strategy is not a banking business but focuses on digital credit. Saylor’s business philosophy is straightforward: “Bitcoin is digital capital, and Strategy is digital credit.”

The reason they do not operate a bank is to maintain focus. Their goal is to create the world’s best digital credit products, and if they have a sincere vision of transforming the market, they must avoid dispersing efforts into unrelated areas. It is more important to avoid competing with customers.

Setting dollar reserves is also a means of strengthening corporate creditworthiness. For credit investors concerned about Bitcoin and stock volatility, assets with the highest creditworthiness are essential. Holding dollar reserves significantly enhances the attractiveness of products and improves corporate credit ratings, especially in the digital lending sector.

The potential size of the digital credit market that Strategy envisions is enormous. Many companies issue senior and corporate credit, but the Bitcoin-backed derivatives market is still in its early stages. Theoretically, it could achieve results far larger than traditional derivatives businesses. Building Bitcoin-backed exchanges, expanding insurance businesses, and other initiatives are still in the pioneering phase of this industry.

Finally, Saylor highlights an important legal perspective. The value of a business company’s stock depends not only on current capital utilization but also on its future business development potential. Projects not yet implemented are not impossible; as the digital credit market grows, Strategy’s strategic vision has room to evolve further.