Bitcoin’s Post-ATH Milestones and ETF Innovations

Bitcoin surged to new all-time highs by mid-2025, and as of early October 2025 it had been roughly 95 days since those peak levels. This milestone came alongside fundamental growth: for example, MicroStrategy’s Bitcoin holdings ballooned in value from initial purchases in 2020 to tens of billions of dollars – a nearly 100× increase in just five years . Such growth underscores the strengthening fundamentals and institutional inflows; BlackRock’s iShares Bitcoin Trust (IBIT), launched in 2024, garnered over $60 billion in inflows within its first year . Notably, the Nasdaq exchange has even proposed allowing in-kind Bitcoin redemptions for IBIT – meaning authorized participants could swap ETF shares directly for actual BTC without selling for cash . This innovation would improve tax efficiency and keep ETF trading aligned with underlying Bitcoin value (no hefty premiums or forced sales) . In short, the post-ATH phase has seen major advances: record capital inflows and new ETF mechanisms that seamlessly convert BTC to IBIT and back, signaling a maturing market infrastructure.

Low Time Preference: Thinking in Years and Decades

A recurring theme in the Bitcoin community is “low time preference,” or prioritizing long-term prosperity over short-term gains. Complaining about 100 days of price action is myopic – 100 days is nothing (a “baby”) compared to the 1,094 days it takes to earn a college degree, or the 16+ years we spend in education. Successful investing and innovation require multi-year commitments. Many venture capitalists operate on 4+ year horizons, and truly transformative ideologies can unfold over decades or even millennia. Bitcoiners often note that expecting a full payoff in 10 weeks or 10 months is naïve; instead, one should think in 4-year cycles and 10–20 year strategies, if not longer. Executive Chairman of MicroStrategy Michael Saylor epitomizes this long view – he has stated a 21-year outlook for Bitcoin, projecting around 29% annual growth (on average) in value over that period, even after Bitcoin’s historical ~60% annual appreciation in its early years . In other words, the 2026 price “doesn’t matter” much to true believers; what matters is the trajectory over a decade or more. As Saylor argues, Bitcoin is an “economic protocol for prosperity” built to last centuries . Adopting such a long-term mindset – measuring success in years and decades instead of days – is key to understanding Bitcoin’s value proposition.

Energy and Bitcoin: Electricity, Nuclear Power, and ESG Realities

Bitcoin’s energy consumption has sparked debate, but a first-principles look at history reminds us that electricity is the lifeblood of modern civilization. In the early 1900s, only ~8% of American homes had electricity; within about 23 years that number shot up to 70% . Widespread electrification revolutionized life – today, half the planet would perish without electricity for basic needs. Far from being “awful,” electricity is what powers hospitals, communication, and innovation. Yes, Bitcoin mining uses electricity, but context matters: even generative AI breakthroughs like ChatGPT require staggering computational power and energy – training OpenAI’s GPT-4 model demands an enormous amount of electricity, placing significant load on power grids . Yet society largely celebrated AI’s advances in 2023 despite the energy cost, indicating a shift where “power is cool again.” In truth, energy use per se is not evil; what matters is what we achieve with that energy. Bitcoin converts electricity into a secure financial network – arguably a worthy output, just as running data centers for AI or lighting cities is.

Critics once similarly demonized nuclear energy. After a peak in enthusiasm around 1973, nuclear power hit a 50-year “bear market” of stalled progress. In the U.S., no new reactors were ordered after 1978 and over 100 planned plants were canceled (virtually **all projects after 1973 were scrapped) . That retreat had consequences: the world remained hooked on oil, leading to wars over oil resources that cost countless lives and dollars. Now, in the 2020s, we see a reassessment – climate concerns and technological advances are reviving interest in nuclear power and other dense energy sources. The narrative is changing: abundant energy is being recognized as crucial for human flourishing. Bitcoin proponents urge reasoning from first principles: rather than swallowing simplistic ESG critiques, one should ask, “Is the energy used for Bitcoin producing net positive outcomes?” When millions died in oil wars and tens of millions lacked electricity, few complained about energy over-use – the problem was not enough clean, peaceful energy. Bitcoin mining, often using stranded or renewable energy, is arguably a far cleaner and more constructive use of power than many legacy industries. With nuclear and renewable power becoming more accepted and ESG sentiments evolving, Bitcoin’s energy usage is increasingly viewed in a balanced light. The bottom line: electricity is not the enemy – it’s a tool. Just as society learned that not all computation is wasteful (despite data centers’ carbon footprint), we are learning that Bitcoin’s proof-of-work is a feature, not a bug, harnessing energy to secure an open monetary network.

Bitcoin’s Age and Resilience

Bitcoin turned 17 years old on January 3, 2026 (Genesis Block anniversary). While still “young” as an asset, it has demonstrated remarkable endurance. Over those 17 years, Bitcoin survived countless challenges – exchange hacks, bans, bear markets – and yet its network and user base kept growing. In discussions, Bitcoin advocates use analogies to emphasize patience: “If you think holding Bitcoin for 100 days is ‘long-term,’ consider that an undergraduate degree takes 1,094 days, and building expertise or a business can take decades.” The implication is that 94 days of endurance is trivial; serious endeavors require years of commitment. Bitcoin’s first 17 years can be likened to childhood and adolescence – the ecosystem has been learning and maturing through trial and error. Now, with its market capitalization in the trillions and increasing integration into mainstream finance, Bitcoin is entering a more mature phase. As of early 2026, a 4-year rolling average of Bitcoin’s price is firmly upward, reflecting its secular growth despite interim volatility. The community often notes that any 4-year moving average of BTC has historically been bullish, smoothing out cyclical booms and busts. This reinforces the view that zooming out to multi-year timeframes reveals Bitcoin’s consistent upward trajectory. In short, Bitcoin’s “teenage” years have proven its resilience. Like a hardy adolescent that has weathered storms, Bitcoin is poised to enter adulthood stronger than ever – and its proponents stress that 17 years is just the beginning for a technology aimed at a multi-century impact.

Mainstream Financial Adoption and Bitcoin-Backed Credit

Perhaps the most striking development by late 2025 is the shift among large financial institutions toward Bitcoin. Major U.S. banks – including BNY Mellon, Wells Fargo, Bank of America, Charles Schwab, JPMorgan, and Citi – that once shunned or “excluded” Bitcoin are now quietly building Bitcoin-based products . In fact, these banking giants (collectively managing many trillions in assets) have started issuing credit lines using Bitcoin as collateral . Saylor reported in December 2025 that within the previous six months, multiple big banks approached him to engage with Bitcoin or Bitcoin derivatives like IBIT . This marks a sea change: the multi-trillion-dollar banking industry is embracing Bitcoin’s pristine collateral for lending and custody services. Some banks announced plans to let clients hold Bitcoin in bank custody and to extend BTC-backed loans by 2026 . Effectively, Bitcoin is being treated as “digital gold” or “digital capital” by the highest levels of finance . This institutional pivot suggests that counterparty risk dynamics are shifting – rather than viewing Bitcoin as risky, banks see that not integrating Bitcoin could mean missing out on a strategic asset. Wealthy families and family offices have also taken notice: surveys indicate a rising share of family offices now allocate to cryptocurrency (Goldman Sachs found roughly 26% of family offices were invested in crypto by 2023, up from 16% in 2021) . Increasingly, the question among the world’s wealthy is not “Is Bitcoin legit?” but “How much Bitcoin do you have?” – hinting at Bitcoin becoming a new benchmark of wealth. The convergence of these trends – banks offering Bitcoin credit and families accumulating Bitcoin – points to a future where BTC is deeply embedded in the global financial system, from the institutional level down to individual portfolios. In Saylor’s words, Bitcoin is “the emerging global capital network” that will only grow stronger as more entities plug into it .

Corporate Bitcoin Strategies: MicroStrategy & Beyond

Different companies approach Bitcoin in different ways, each with a unique value proposition. MicroStrategy (now rebranded as “Strategy” in 2025 ) pioneered the Bitcoin treasury strategy and remains the largest corporate holder of BTC. As of January 2026, Strategy holds an astounding 687,410 BTC (worth about $62.8 billion at prevailing prices) on its balance sheet . Notably, the company has never sold any of its Bitcoins – all gains are unrealized gains on its books, reflecting a deliberate long-term holding stance . For example, by early 2025 Strategy already had $15.7 billion in unrealized BTC gains , and that figure only grew as Bitcoin’s price climbed. These paper gains aren’t just theoretical; new accounting rules in 2025 allowed such fair-value gains to flow into retained earnings, and Strategy has leveraged its appreciating hoard to raise capital. Saylor often highlights the tax advantages of this approach: by using Bitcoin-backed debt or equity issuance, a corporation can obtain cash without triggering taxable events on their BTC holdings – effectively borrowing against future appreciation. In October 2025, for instance, Strategy issued convertible bonds at a 0% coupon (zero interest) – investors were eager to get upside exposure to Bitcoin through the company’s instruments . This access to cheap capital, combined with Bitcoin’s high expected return, creates a powerful arbitrage. As Saylor explained on CNBC, MicroStrategy can borrow at, say, ~6% interest and invest in Bitcoin which has been rising ~60% annually in recent years . Even if Bitcoin’s growth moderates to ~30% a year, the spread is enormous. Such financial engineering turns Strategy’s stock into a leveraged bet on Bitcoin – Saylor calls it “high-voltage Bitcoin, 2× Bitcoin” . Indeed, MicroStrategy’s common stock has exhibited roughly 2× the volatility and return of Bitcoin (amplifying BTC’s moves) . And for those seeking a blend of safety and upside, Strategy even offers Bitcoin-backed bonds (convertible notes) which Saylor notes are outperforming Bitcoin itself while providing downside protection .

The broader point is that corporations have tools – debt, equity, and tax vehicles – that can potentially outperform a raw BTC investment. Corporations don’t pay capital gains tax until they sell their assets; similarly, ETF structures with in-kind redemptions avoid triggering taxable events . This means holding Bitcoin in a corporate or fund structure can be highly tax-efficient, compounding gains internally. Additionally, companies can utilize leverage (prudently) to buy more Bitcoin than their equity alone would allow, thereby boosting returns if Bitcoin’s price increases. Of course, leverage cuts both ways – it can “amplify losses 3× as fast” on the downside, as critics rightly caution. Saylor acknowledges that the biggest risk to his strategy is an “extinction-level” collapse of Bitcoin’s value . However, he argues that risk is acceptable to Bitcoin-believer shareholders, and beyond that, the company is structured to withstand even a severe (e.g. 80–90%) drawdown . In Saylor’s view, the upside of leveraging Bitcoin far outweighs the downside, given his conviction in Bitcoin’s long-term rise. This approach isn’t suitable for every company or investor, but it highlights a spectrum of Bitcoin strategies: from simply holding BTC as treasury reserve, to issuing Bitcoin-backed securities that funnel traditional capital into Bitcoin, to full-fledged business models built around Bitcoin services.

“Don’t Eat Your Own”: Fostering a Pro-Bitcoin Business Community

Within the Bitcoin community, there has been debate about how to regard companies that adopt Bitcoin. Michael Saylor has advised fellow Bitcoiners “don’t eat your young” – in other words, do not attack or harshly criticize those entities that have taken the plunge into Bitcoin, even if they are not perfect. As of late 2025, only a relatively small cohort of companies have put Bitcoin on their balance sheets – on the order of hundreds of companies (perhaps a couple hundred public companies), out of 400 million companies worldwide . That’s a rounding error; global Bitcoin adoption among businesses is still <1%. Saylor’s point is that we should celebrate and support these early adopters, not nitpick them. Some Bitcoin purists have lambasted certain Bitcoin-holding companies for unrelated reasons or for not being “maximalist enough.” But from a strategic perspective, infighting is counterproductive. The focus should be on converting the remaining 400,000,000−odd companies, not on shaming the first 200. “Stop criticizing the 200 companies that bought Bitcoin and start focusing on the 400 million that haven’t,” as Saylor has essentially said. The market on Earth is big enough for every company to buy Bitcoin without stepping on each other’s toes. One company choosing a Bitcoin standard doesn’t prevent another from doing so – in fact it likely makes it easier by paving the way.

The premise is simple: Bitcoin’s network effect grows stronger as more participants join. When a middling or struggling company adopts Bitcoin, it arguably benefits both that company and the broader community by adding new demand and strengthening the network. There is no need for Bitcoiners to play gatekeeper, deciding which companies are “worthy” – let the market decide. If anything, a company with poor fundamentals that buys Bitcoin might become more competitive (or at least extend its runway) thanks to BTC’s appreciation. For example, a hypothetical small company with $20 million annual revenue growing 30% could, by reinvesting in Bitcoin, potentially transform into a much larger enterprise over a decade of Bitcoin’s growth. We have seen real cases: MicroStrategy itself was a low-growth software firm (pulling in roughly $30 million in yearly operating income) before its Bitcoin pivot; since then, its stock and fortunes have dramatically improved, compounding at rates far above its old business trajectory . Bitcoin effectively gave it a second act. Every company has a different value proposition and reason for embracing Bitcoin – be it as a treasury hedge, a strategic investment, or part of a fintech product – but all add value to the ecosystem.

Saylor also notes that a company’s stock price is determined by the market, not by the company itself. So if a company’s stock lags even after buying BTC, that’s not a failure of Bitcoin – it could be timing or other factors. Early corporate adopters took on significant risk and deserve some patience. Rather than schadenfreude at any short-term struggles, Bitcoin proponents argue that time will vindicate those who had the foresight to accumulate BTC early. Meanwhile, instead of saying “this or that company shouldn’t have bought Bitcoin,” the community viewpoint is increasingly inclusive: “The market has room for all 400 million companies to hold Bitcoin.” In practical terms, not every company can issue convertible debt like MicroStrategy or adopt Bitcoin overnight – some have high debt, conservative boards, regulatory constraints, etc. But any company can start with small allocations or integrate Bitcoin services. The Bitcoin community is better served by outreach and education (to help more firms get on board) than by internal bickering. As Saylor has cast it, his outreach is a continuous “campaign of advocacy” – sharing playbooks, accounting tips, legal filings, and success stories to inspire others . The mission is to get from dozens of Bitcoin companies to hundreds, then thousands, and eventually millions . To achieve that, it’s crucial to maintain a positive, welcoming stance toward newcomers. In summary, Bitcoiners are reminded: don’t criticise or discourage those who join the cause – recruit more! Uniting the community and thinking big (global adoption) will do far more for Bitcoin’s success than squabbling over whose approach is purer.

Conclusion

In the grand scheme, the short-term price of Bitcoin (be it in 2026 or any given year) is but a footnote. Visionaries in the space counsel looking at rolling 4-year averages or multi-decade trends – by those measures, Bitcoin’s trajectory has been overwhelmingly positive and likely will continue as adoption grows. Key drivers underpinning this optimism include an expanding recognition of Bitcoin’s long-term value (a low time preference mindset pervading investors), an evolving narrative on energy use (with Bitcoin mining seen as an acceptable and even innovative energy sink, especially as ESG perspectives mature), and the entry of major institutions and corporations which lend Bitcoin both utility and credibility. We have witnessed Bitcoin’s journey from a fringe experiment to a mainstream asset class fueling new financial products and strategies. Each point discussed – from ETF in-kind redemptions, to nuclear energy analogies, to MicroStrategy’s leveraged plays, to the 400 million companies yet to adopt – paints a picture of a nascent monetary revolution steadily coming of age.

To tie it all together, consider how far-reaching the Bitcoin movement’s time horizon is. Some advocates liken Bitcoin to an ideological movement with a 10,000-year vision – restoring sound money for millennia to come. While that may be hyperbole, it underscores that Bitcoin is not just another trade or tech fad; it’s seen as a fundamental improvement in how humans store and transfer value, akin to harnessing electricity or inventing the printing press . Achieving such world-changing outcomes requires patience, resilience, and inclusion. By thinking for ourselves and reasoning from first principles, we can cut through transient doubts (be it price dips or media FUD) and focus on the enduring core: Bitcoin’s mathematically sound, decentralized design. As Saylor eloquently put it, “What if water stopped flowing downhill? What if gravity stopped working?… It’s not going to stop” – in his view, Bitcoin’s rise is driven by immutable economic forces, a thermodynamic inevitability in a world seeking a superior store of value . Whether one fully agrees or not, it’s clear that Bitcoin’s story is still in its early chapters. The coming years will test and temper this technology further, but if the trends highlighted continue, Bitcoin is on track to play an integral role in the financial and energy landscape of the 21st century and beyond.

Sources:

  • Nasdaq News (Jan 2025) – “Nasdaq Proposes In-Kind Redemptions for BlackRock’s Bitcoin ETF” 
  • Seeking Alpha (Mar 2025) – “(Micro)Strategy: The Most Leveraged Bitcoin Play” 
  • CNBC Interview (late 2025) – Saylor discusses MicroStrategy’s strategy and Bitcoin’s growth rate 
  • Congressional Digest – Nuclear power industry history (post-1973 stagnation) 
  • Reddit (AskHistorians) – U.S. electrification rates 1907–1930 
  • MIT News (Jan 2025) – Generative AI’s electricity demand (ChatGPT/GPT-4 energy use) 
  • MEXC/Bitcoinist (Dec 2025) – Saylor at Bitcoin MENA: major banks now embracing Bitcoin collateral 
  • Wu Blockchain Interview (2023) – Saylor on advocating Bitcoin to 400 million companies 
  • BitcoinTreasuries.net (Jan 2026) – Strategy (MicroStrategy) holdings and rebrand info