Michael Saylor of Strategy believes that as more institutions adopt Bitcoin, it will become a more stable investment option. It’s key, he says, that major players look for low volatility before fully engaging in this market.
During a recent episode of the Coin Story Podcast, Saylor described this shift as a natural progression, suggesting that early phases usually involve a bit of volatility to accommodate large-scale capital.
His forecast suggests Bitcoin could stabilize around $115,500 after reaching a peak of $124,100 in August.
Despite current pressures on sales, Saylor remains confident in his investments, likening his approach to that of startup employees who believe in future prospects, even with diversifying holdings.
Reports highlight that Bitcoin holdings among companies have reached a whopping 1.011 million BTC, worth over $118 billion, representing about 5% of the total circulating supply.
Nevertheless, the accumulation trend has significantly altered compared to the aggressive buying seen in 2024.
For instance, MicroStrategy’s monthly BTC purchases plummeted from 134,000 in November 2024 to a mere 3,700 in August 2025, while the market premium on their net asset value has dropped from 3.89 to 1.44 times.
Even with a downturn in acquisition strategies, companies have slightly reduced their overall share of corporate holdings, yet they continue to bolster their investments.
In fact, public companies have added 415,000 BTC to their holdings this year, surpassing last year’s total of 325,000 BTC.
In July and August alone, 28 new companies focused on Bitcoin financing emerged, contributing 140,000 BTC to their corporate portfolios.
However, it seems these companies are being cautious, opting for smaller purchases amid wider economic uncertainties and stricter risk protocols from shareholders.
A recent report also indicates that about a quarter of public Bitcoin financing firms are currently valued below their net asset values, with the average NAV multiples dropping from 3.76 in April to 2.8.
Some companies, like Naka, trade around 0.7 times their NAV after facing a severe drop from their peak market value, while others, including Twenty One and Semler Scientific, are trading below their Bitcoin holdings.
During his podcast appearance, Saylor shared his ambition to reshape the credit market with Bitcoin-linked financial instruments, pinpointing flaws in conventional fixed-income markets.
He noted a lack of competitive returns in the current credit environment, with Swiss banks offering a negative 50 basis points, while traditional European bonds yield only about 2.5%, all while inflation outpaces these figures.
The Strategy has initiated four distinct Bitcoin-backed Priority Stock Instruments aimed at various market segments, promising different returns for investors.
These include an 8% dividend with conversion rights, a consistent 10% yield on preferential liquidation, and an effective yield of 12.7% designed for those willing to embrace more risk.
Their latest offering, dubbed the stretch, is structured to provide what Saylor describes as “desirable” monthly variable dividends to help mitigate risk and volatility.
Using AI support, this innovative structure aims to compete with traditional money market instruments while still linking to Bitcoin, targeting a yield of about 10%.
This framework allows for dividend payments to be funded by capital raised through stock sales instead of selling Bitcoin.
On average, the company raises approximately $2 billion annually in the stock market, using around $600 million for dividends and reallocating the rest for more Bitcoin acquisition.
This setup helps the Strategy leverage growth without taking on credit risks, all while continuing to build their Bitcoin reserves.
Saylor highlighted that the maturation of Bitcoin for institutional investors requires time and patience as participants adjust to new financial tech.
He likened the current landscape to the early oil industry back in 1870, when investors initially struggled to grasp the full potential of crude oil derivatives.
Executives have labeled the period from 2025 to 2035 as a “Digital Gold Rush,” emphasizing a time of experimentation with business models and new product creation.
The Strategy hopes to secure credit ratings for its assets through extensive institutional education and aims to become the first investment-grade Bitcoin financing company.
Market dynamics continue to evolve, as traditional financial measures appear inadequate for assessing Bitcoin financing firms, something a recent study by Sentora has echoed.
Saylor remarked that many institutional investors still need basic Bitcoin education, and he also questioned the regulatory landscape regarding asset bans despite some policy clarifications.
As companies manage large Bitcoin supplies, the risk of concentrated holdings poses dangers too.
Analysts warn that shifts in strategy among large holders could lead to reduced liquidity and increased market volatility.
Yet, retail interest remains robust, with around 75% of Bitcoin ETF stocks held by non-institutional investors, providing essential support, particularly in times of dwindling institutional demand.
While the transition to institutional control may render Bitcoin less volatile, Saylor argues that this evolution is essential for realizing Bitcoin’s potential as a foundational layer of global digital finance.
