Bitcoin fundamentals turn the page, MicroStrategy targets the blue ocean of digital credit investment

In a deep podcast interview, MicroStrategy founder Michael Saylor shared his new insights into Bitcoin’s development by 2025 and how the company is pioneering new avenues in credit investment. He emphasized that the true progress of Bitcoin does not stem from short-term price fluctuations but from institutional-level commercialization breakthroughs and the improvement of financial infrastructure. This shift creates unprecedented opportunities for credit investors.

2025 as the Inflection Point for Bitcoin Commercialization, Five Fundamental Breakthroughs Paving the Way for Credit Investment

Saylor listed five key breakthroughs Bitcoin achieved by 2025, fundamentally changing financial institutions’ attitudes toward Bitcoin as an asset and collateral for credit.

First is the restoration of insurance coverage. As early as 2020, when MicroStrategy purchased Bitcoin, insurance companies had already ceased coverage. Over four years, the company’s Bitcoin holdings grew from billions to hundreds of billions of dollars on its balance sheet, yet it could not obtain commercial insurance until 2025, when insurers resumed coverage. This shift marks a reassessment by the insurance industry of Bitcoin risk.

Second is the update of accounting standards. With the adoption of fair value accounting, the company was able to recognize profits from Bitcoin holdings in its financial statements for the first time. Meanwhile, in 2025, the government clarified tax guidelines, resolving the issue of unrealized capital gains taxes that had troubled many listed companies, making it less risky for enterprises to hold Bitcoin.

The third breakthrough comes from the full acceptance of bank credit. At the beginning of the year, using Bitcoin worth billions of dollars as collateral nearly yielded no credit. But by the end of 2025, most major U.S. banks began accepting IBIT (Bitcoin spot ETF) as collateral for lending, with about a quarter of banks announcing plans to directly provide financing with BTC as collateral. This transformation is significant for credit investors—Bitcoin is evolving from a speculative asset to a widely recognized high-quality collateral by financial institutions.

The fourth dimension is a shift in regulatory attitude. The U.S. Department of the Treasury issued positive guidance on including crypto assets on bank balance sheets, and the chairs of the SEC and CFTC also expressed support for Bitcoin and cryptocurrencies. These policy signals provide a clear legal foundation for institutional credit investments.

The fifth breakthrough is the commercialization and refinement of trading infrastructure. CME Bitcoin derivatives markets have achieved commercial-grade applications, and the creation and redemption mechanisms for spot ETFs are becoming more mature. Investors can seamlessly exchange Bitcoin worth $1 million for an equivalent IBIT, and reverse operations are also tax-free. This liquidity and swap convenience create the necessary market depth for credit investment.

Combining these five fundamental changes, 2025 is essentially a milestone year when Bitcoin transitions from a niche asset to a mainstream financial instrument. Although the year-end price did not hit new highs, the entire commercialization framework has been established—this is what truly matters for the long-term value of credit investment.

Short-term Volatility Does Not Obstruct Long-term Logic; Institutional Credit Demand Drives Continued Adoption

Saylor explicitly counters the market’s overemphasis on Bitcoin’s short-term price. He points out that even if prices have retreated compared to last year, the number of publicly listed companies adopting Bitcoin is rapidly increasing—from 30-60 in 2024 to about 200 by the end of 2025. This magnitude of growth is a more meaningful indicator of the health of the fundamentals.

He emphasizes the central role of time preference in Bitcoin investing. Evaluating Bitcoin on weekly or monthly scales is a fundamental cognitive bias. Historical major ideological and technological movements show that any worthwhile goal takes a decade or more to achieve. Observing the four-year moving average reveals a strong upward trend in Bitcoin. For credit investors, this means the underlying asset’s value is expected to continue appreciating.

From a credit investment perspective, the recent three-month price correction actually presents an important buying opportunity. This is not speculation but an optimization of the long-term asset allocation baseline. The entry of institutional credit investors depends on ensuring both asset stability and growth, and Bitcoin already meets these conditions.

Treasury Strategies Are Not the End; Bitcoin Is the Universal Capital of the Digital Age

Regarding concerns about whether the market can accommodate 200 “treasury companies,” Saylor offers a disruptive perspective. He compares Bitcoin to electricity—it is a fundamental productivity tool, not merely a speculative asset. Every household and company can hold Bitcoin; with 400 million companies worldwide, why should holding only 200 be a concern?

He further elaborates on the investment logic: Loss-making companies holding Bitcoin can improve their balance sheets, while profitable companies can amplify gains. For example, in a hypothetical scenario, a company losing $10 million annually could hold $100 million worth of Bitcoin on its balance sheet and realize $30 million in capital gains, ultimately improving its performance. In this case, criticizing their Bitcoin purchase is misplaced—what should be scrutinized is operational efficiency.

Saylor also highlights a key legal and financial point: the equity value of an operating company depends not only on how it uses capital today but also on what it could do in the future. This provides a theoretical basis for diversified business exploration for companies like MicroStrategy.

Accumulating Dollars to Enhance Creditworthiness, Creating the Optimal Asset Portfolio for Credit Investors

In response to questions about dollar and Bitcoin reserves, Saylor reveals a strategic detail often overlooked: accumulating dollar reserves primarily aims to boost the company’s credibility in the eyes of credit investors.

Unlike stock investors who prefer highly volatile assets for maximum returns, credit investors are highly sensitive to asset volatility. Their willingness to purchase credit products depends on the issuer’s strong credit foundation. When credit investors evaluate a company, a higher proportion of high-quality dollar assets can mitigate concerns about equity volatility, encouraging more active credit investment.

This explains why MicroStrategy continues to increase Bitcoin holdings while maintaining substantial dollar reserves. The combination creates a unique financial structure: Bitcoin represents long-term appreciation potential, while dollars serve as a short-term safety cushion. This mix offers the optimal risk-reward balance for credit investors.

Digital Credit Is the True Battlefield of Strategy; the Market Space Is Unimaginably Large

Regarding MicroStrategy’s future positioning, Saylor clearly states the company will not become a traditional bank. Instead, its strategic focus is on developing top-tier digital credit products backed by Bitcoin. An ideal digital credit product should be: publicly traded, with a dividend yield of 10%, and a price-to-book ratio of 1 to 2.

If such products capture 10% of the government bond credit market, the total market size could reach $10 trillion. This figure demonstrates that the digital credit market is far from saturated.

Saylor further elaborates on the vast prospects of the digital credit ecosystem. There is enormous development potential in Bitcoin-backed derivatives, exchanges, and insurance products. Currently, almost no insurance companies use Bitcoin as collateral or capital base, indicating the ecosystem is still in its early stages. Instead of diverting attention to banking, the focus is on building the world’s best digital credit products—this strategic choice helps MicroStrategy avoid competitive distortions and concentrate on technological advantages.

In this grand vision, Bitcoin’s price is no longer the most critical variable. The real drivers of value are the improvement of financial infrastructure, the prosperity of institutional credit investment, and the resulting virtuous cycle. The foundation laid in 2025 is paving the way for a great credit investment boom in 2026 and beyond.

Additional Data: As of the end of January 2026, BTC is priced at $89,360, a retracement from the all-time high of $126,080. However, this price correction is precisely a window for institutions to optimize their asset allocation in credit investment.