Michael Saylor, Co-Founder and Executive Chairman of MicroStrategy, has expressed concerns about the evolving nature of Bitcoin as institutional adoption grows. During a recent episode of the Coin Stories podcast, Saylor noted that while Bitcoin has historically been an adrenaline-fueled investment, increased demand from mega institutions for lower volatility could transform it into a more stable store of value. He highlighted this shift as a natural progression, where initial volatility allows for accommodating large-scale institutional investment.
This commentary comes as Bitcoin has stabilized around a price of approximately $115,500, following a record high of $124,100 in August. Saylor indicated that current market pressures stem from early investors diversifying their portfolios rather than exhibiting a lack of faith in Bitcoin’s long-term prospects. He compared this situation to startup employees selling stock options to cover living expenses while maintaining belief in the company’s future.
According to a report from Cryptonews, corporate treasuries holding Bitcoin reached an unprecedented total of 1.011 million BTC, valued at over $118 billion. This allocation constitutes around 5% of Bitcoin’s circulating supply. However, the patterns of accumulation have shifted significantly. MicroStrategy’s monthly Bitcoin purchases plummeted from a high of 134,000 BTC in November 2024 to merely 3,700 BTC in August 2025. Consequently, the company’s market premium over its net asset value (NAV) decreased from 3.89 times to 1.44 times.
Despite this reduction in its purchasing activities, other firms have increased their Bitcoin acquisitions, causing MicroStrategy’s share of corporate Bitcoin holdings to drop from 76% to 64%. In 2025 alone, public companies added 415,000 BTC to their treasuries, surpassing the total of 325,000 BTC acquired throughout the entire year of 2024. Additionally, 28 new firms entered the Bitcoin treasury sector in July and August, contributing a collective 140,000 BTC. However, these firms are now opting to make smaller transactions amid broader macroeconomic uncertainty and heightened risk management from their shareholders.
An alarming trend has emerged in which a quarter of public Bitcoin treasury companies are trading below their net asset values. The average NAV multiple has also seen a decline from 3.76 in April to 2.8 currently. Companies like NAKA are trading at just 0.7 times NAV due to significant losses, while others also struggle as their market values drop below the worth of their Bitcoin holdings.
During the podcast, Saylor shared his vision of revolutionizing credit markets through Bitcoin-backed financial instruments, identifying fundamental weaknesses in current fixed-income markets. He criticized the existing credit environment for being “yield starved,” noting that traditional financial products provide returns that fail to keep pace with inflation.
In response, MicroStrategy has launched several Bitcoin-backed preferred stock instruments. These products are designed to cater to various market segments with different risk profiles. For instance, Strike offers an 8% dividend, while Strife provides perpetual yields of 10%. Additionally, new innovative structures, such as Stretch, have been created to minimize risks associated with duration and volatility, aiming to compete effectively with money market instruments.
Saylor emphasized that these instruments help fund dividend payments through equity capital raises rather than relying on Bitcoin sales, thereby allowing the company to maintain its acquisition strategy. MicroStrategy generates around $20 billion annually from equity markets, deploying a portion of this funding for dividend payments while reinvesting the remainder back into Bitcoin.
Looking ahead, Saylor foresees a “digital gold rush” from 2025 to 2035, marked by extensive experimentation in business models and finance products. He aims for MicroStrategy to become the first investment-grade Bitcoin treasury company, actively working to secure credit ratings for these instruments through education initiatives.
Despite the shifting dynamics of institutional investment in Bitcoin, Saylor acknowledged certain risks, such as regulatory uncertainties and corporate concentration risks, which could affect market liquidity and volatility. However, he also noted that retail participation remains robust, with about 75% of Bitcoin ETF shares held by individual investors, providing crucial support during periods when institutional demand slows.
The evolution toward increased institutional dominance may make Bitcoin feel “boring” compared to its previous volatility. Still, Saylor views this maturation as a necessary step toward realizing his ambition of Bitcoin becoming a primary global asset and settlement layer for finance.
