Digital Financial Architecture: Bitcoin from Controversial Asset to Fundamental Capital

It’s not from today that Bitcoin has begun to change its nature. From an experimental technology within the technical community, Bitcoin is gradually transforming into a globally recognized financial tool. Michael Saylor, co-founder of MicroStrategy, recently shared his vision on an international blockchain forum, painting a complex picture of how Bitcoin is building a new financial system based on the foundational value of digital assets.

Saylor does not discuss temporary price fluctuations. Instead, he focuses on a fundamental reality: Bitcoin is completing a historic turning point — from a suspicious asset to a foundational capital for the entire digital economy. According to him, the digital credit system built on this will restructure the global credit market worth up to 300 trillion USD.

Game-changing Factors

The transformation does not come from tech pioneers but from highly strategic decisions by centers of power. In developed countries, especially the US, regulatory and political agencies have entered a new phase.

Policy Shift

Senior officials at the Treasury Department, Securities and Exchange Commission, along with trade and intelligence agencies, publicly support digital assets. These are not empty promises through campaigns but strategic arrangements to position the country as a leader in the digital era.

Traditional Finance Industry Changes Stance

The most conservative institutions on Wall Street — JPMorgan, Bank of America, Citigroup — have shifted from cautious to active participation. Oversight agencies like the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve have explicitly allowed banks to custody Bitcoin, accept it as collateral, and offer related credit products.

Why Can Bitcoin Play This Role?

Saylor points out that Bitcoin is not “chosen” for its modernity or support but because it has built physical strengths no other asset possesses.

A Massive User Community

Hundreds of millions of people worldwide use Bitcoin, forming a significant social-political force. In the US, about 30% of voters are registered supporters of cryptocurrencies. This is a large enough voter bloc to influence any policy.

Real Capital Accumulated in Trillions

Over 1 trillion USD has been permanently invested in the Bitcoin network. MicroStrategy alone has pumped in about 48 billion USD, holding 3.1% of the total circulating Bitcoin. This is not speculation but a long-term commitment by major organizations viewing Bitcoin as a core reserve asset.

Extremely Powerful Computing Infrastructure

Bitcoin’s computing power exceeds 1000 EH/s, far surpassing the combined capacity of all Google and Microsoft data centers. Millions of miners worldwide form a security system for the ledger that cannot be breached. This level of security surpasses any centralized system or traditional financial infrastructure.

Linked to Physical Energy

The Bitcoin network consumes about 24 GW of electricity, equivalent to 24 large nuclear power plants. This demonstrates that Bitcoin’s value is tightly linked to the physical world, not just a “castle in the air.”

From Primitive Capital to Digital Credit

Saylor does not stop at theory. He uses MicroStrategy as a model to illustrate how Bitcoin can become a profit-generating financial tool to meet broader needs.

Capital Restructuring Strategy

Traditional corporate finance faces a contradiction: the cost of capital for (company) is about 14% for equity(, higher than the cash yield held) at around 3%(. This continuously erodes shareholder value.

MicroStrategy addresses this by issuing shares or bonds) with a cost of 6%-14%( to buy Bitcoin, expected to yield an average annual return of 47%. This strategy creates a large value surplus, transforming the capital structure from “depreciation” to “profitability.”

Credit Product System

The ultimate goal is to turn Bitcoin — a volatile asset — into a tool that generates steady cash flow. MicroStrategy has designed a suite of products for different investors:

STRC — positioned as a “high-yield savings account.” Stable price around 100 USD, small fluctuations, but offering 10.8% annual yield with monthly interest. This product targets those needing stable income.

STRF is the top-priority, safest credit, with a 9% yield. STRD is a long-term instrument with yields up to 12.9%. STRK is a structured product allowing investors to receive interest while retaining profits from Bitcoin’s appreciation.

Tax Efficiency

A core advantage of this model lies in its tax structure. By paying dividends as “return of capital” rather than “interest,” investors receive cash flows that are nearly tax-free. As a result, STRC with a nominal yield of 10.8% provides an effective after-tax yield of about 17% for US investors, far outperforming traditional bank savings.

Restructuring the Global Credit Market

Saylor talks about a new system, not just a company. His vision is much broader.

Fixing the Malleable Yield Curve

In economies like Switzerland, Japan, with zero or negative interest rates, traditional financial systems cannot generate real returns for savers. Digital credit tools can offer 10%+ yields in local currency, effectively “rebuilding” a healthy yield curve and protecting citizens’ purchasing power.

Upgrading Traditional Credit

Compared to bank loans or corporate bonds, digital credit based on Bitcoin has clear advantages:

— High Transparency: Collateral ratios and risk models are updated and publicly available every 15 seconds.

— Uniformity: Clear, unique underlying assets.

— High Liquidity: Bitcoin is one of the most liquid assets globally.

— Efficient Issuance: Hundreds of millions USD in credit limits can be established in a day, whereas real estate financing takes years.

A Global Ecosystem

MicroStrategy’s model can be scaled. In the future, “Bitcoin warehouse companies” will emerge in Japan, Korea, Europe. They will use the same logic to provide digital credit services for local markets. This means the digital credit capital system will no longer be limited but will become an open, global financial ecosystem.

Choices in the Digital Era

Saylor concludes with a profound philosophy: Volatility is not a flaw but a sign of enormous energy. Like a nuclear reaction, Bitcoin’s price fluctuations reflect the energy it accumulates to become the “powertrain” of the new era.

If you pursue long-term growth: Hold Bitcoin or other digital assets directly.

If you need stable cash flow: Invest in digital credit tools) like STRC to benefit from Bitcoin network growth while managing risks.

If you are a business: Consider integrating the “Bitcoin capital + digital credit” model into your structure to achieve new efficiencies.

Digitizing the world is irreversible. From information to assets, and now to financial platforms, everything is being restructured. Bitcoin is the core “energy source” of this process — not just an investment object but a foundation to understand and participate in the future.