There are many different cards with different cards of points or "miles"

In the specific case with the Chase Sapphire Preferred card, it earns Ultimate Rewards Points, ( commonly referred as UR here on Flyertalk ).

Ultimate Rewards are commonly used for 3 types of redemptions, ( there are many other options available )

A) Cash. 1 Point can be redeemed for 1 cent of cash, straight and simple

B) Use it to book travel at a fixed rate, in the case of the Sapphire Preferred Card, the rate is 1 Point = 1.25 Cent(s)

In other words, a $125 plan ticket will require 10,000 point

C) Transfer into Frequent Flyer or Frequent Hotel Guest programs at a 1:1 ratio. ( This is the option that most here on Flyertalk value the most )

Point that transferred to Airline's Frequent Flyer Programs are considered the almost same kind of Miles that you will have from the Airlines give you directly, with one major exception.

That is:

These points are Redeemable Miles (RDM) - the miles you use to get an award ticket, upgrade using miles, or redeem for other airline and partner awards.

However, these points are NOT Elite Qualifying Miles (EQM) - the numbers of miles you earn toward elite status.

So in other words, you can use these points transferred in to get an award ticket but no matter how much you transfer in it will not make you an Elite member in the respective programs.