Bitcoin's Financial Revolution in the Digital World: From Capital to Credit

When the joint founders of the world’s largest software company articulate a vision at an international summit, that vision often signals a turning point for the era. MicroStrategy founder Michael Saylor’s recent perspective exemplifies this — leveraging decades of practical experience, he reveals how Bitcoin has evolved from a controversial investment asset into the foundational layer of the global digital economy, and how this layer underpins a new credit system valued at trillions of dollars.

1. A Unified Shift in Policy and Institutions

The past twelve months have witnessed a profound institutional evolution. This is not a self-congratulatory moment for the tech community but a top-level adjustment of traditional power structures.

The highest political echelons in the United States have incorporated digital assets into the national strategic framework. More importantly, this stance is no longer just words — key appointments in the new government clearly reflect this shift. The Department of the Treasury, securities regulators, and core decision-makers in commerce and intelligence systems are openly recognizing digital assets. This means Bitcoin has risen from a fringe issue to a policy consensus across multiple government agencies.

The follow-up actions by financial institutions are even more decisive. The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and Federal Reserve jointly issued guidance explicitly encouraging banks to engage in crypto custody and Bitcoin-backed lending. Top global banks have swiftly moved from hesitation to action, marking Bitcoin’s formal integration into the modern financial system.

2. Why Bitcoin Can Become the “Cornerstone of the Digital Realm”

All of this is not based on faith but on verifiable tangible foundations.

A massive political and social base is the first pillar. Hundreds of millions of users worldwide form a powerful political force. In the U.S., about 30% of registered voters support cryptocurrencies, making it a factor that must be considered in any political decision. This broad social foundation reduces policy risks.

Permanent capital deposits of trillions of dollars are the second pillar. Over $1 trillion of real capital has been injected into the Bitcoin network. MicroStrategy itself holds over $4.8 billion in Bitcoin, accounting for 3.1% of the global circulating supply. The long-term commitment of such publicly listed companies indicates that Bitcoin is no longer just a speculative asset but a strategic choice as a core reserve asset.

Unparalleled distributed computing power is the third pillar. The Bitcoin network’s hash rate exceeds 1000 EH/s, surpassing the combined data center capacity of tech giants like Google and Microsoft. This decentralized network of millions of miners worldwide provides security levels unmatched by traditional financial infrastructure.

Massive physical-world energy anchoring is the fourth pillar. The Bitcoin network consumes about 24 gigawatts of electricity continuously, equivalent to the full capacity of 24 nuclear power plants. This specialized utilization of physical energy firmly ties the value of virtual assets to real-world infrastructure. As of January 2026, Bitcoin’s current price is $92,170, with a 24-hour increase of +1.54%, a circulating supply of 19,974,768 BTC, further confirming market recognition of its value.

3. From Capital to Cash Flow Transformation

MicroStrategy’s practices demonstrate how to convert Bitcoin from a “raw capital” into a “digital credit tool” serving the public.

Traditional corporate finance faces a fundamental contradiction: the company’s cost of capital (equity return around 14%) is much higher than the yield on cash assets (about 3%), eroding shareholder value. MicroStrategy’s solution is to issue equity or bonds (cost 6%-14%) to purchase Bitcoin assets with an annualized return of about 47%. This operation creates enormous value surplus, strengthening the capital structure as it expands.

More innovatively, it designs its credit product lines tailored to different risk preferences:

STRC is positioned as a “stable-return digital banking product,” priced near $100, with minimal volatility, yet offering about 10.8% annual yield and monthly dividends.

STRF (and its euro version) is an ultra-priority credit grade with approximately 9% yield; STRD is a long-term high-yield instrument with up to 12.9%; STRK is a structured product allowing investors to earn interest while retaining some upside potential of Bitcoin.

The most revolutionary aspect is its tax structure. By paying dividends as “capital returns” rather than “taxable interest,” investors achieve near-tax-free cash flow. This makes the nominal 10.8% yield of STRC equivalent to an after-tax return of about 17% for U.S. investors, far exceeding traditional bank savings and money market funds.

4. The Prospect of Reshaping the Global Credit System

This transformation is far more than an innovation by a single company.

In economies like Switzerland and Japan, where long-term interest rates are near zero or negative, traditional financial systems cannot offer genuine returns to savers. Digital credit tools based on Bitcoin can provide stable yields above 10% in local currencies, effectively “rebuilding” healthy yield curves in these economies and protecting citizens’ savings purchasing power.

Compared to traditional bank loans and corporate bonds, Bitcoin-backed digital credit has intrinsic advantages: high transparency (collateral ratios updated every 15 seconds), homogeneity of underlying assets, and extreme liquidity (the best global liquidity for collateral, with highly active trading). Its issuance and capital allocation are astonishing — hundreds of millions of dollars in credit lines can be established within a day, whereas traditional financing cycles take years.

The future landscape is a replicable ecosystem. Localized “Bitcoin treasury enterprises” are expected to emerge in Japan, Korea, Europe, and other regions, providing efficient digital credit services tailored to local markets. Driven by Bitcoin, the financial system will no longer be confined to the U.S. or a few institutions but will evolve into a globally open and competitive new ecosystem.

5. Energy Density Amid Volatility

Regarding the eternal question of Bitcoin’s volatility, Saylor offers a new perspective: volatility is not a flaw but a reflection of its enormous energy density. Just as nuclear reactions contain vast energy, Bitcoin’s price fluctuations mirror the tremendous energy accumulated as a “capital engine” of the digital age, capable of transforming the world.

This provides clear pathways for different participants:

Those seeking long-term growth and able to withstand volatility should directly hold Bitcoin and other “digital capital.”

Those needing stable cash flow or with lower risk tolerance can invest in digital credit tools (like STRC) to participate in growth dividends while effectively controlling volatility.

Businesses and builders should consider how to integrate the “Bitcoin capital + digital credit” model into their balance sheets or operational structures to achieve efficiency leaps.

Conclusion

The world’s digital transformation is irreversible. From information to assets, and further down to financial rules, everything is being reconstructed. Bitcoin and its emerging new financial system are the core energy sources of this reconstruction.

In this wave of global digital civilization, Bitcoin has transcended being just an investment target to become a key cornerstone for understanding and participating in the future. The key is not to instinctively escape but to learn how to move forward amid change.