Michael Saylor, the founder of MicroStrategy, recently shared his “21 Rules of Bitcoin” via social media. These principles not only encapsulate his firm belief in cryptocurrency but also reveal the underlying logic of the digital capital era. Combining philosophy, economics, and technological insights, these rules are underpinned by MicroStrategy’s radical practices and reflect the inevitable shift in the global wealth structure.
Bitcoin as a “Digital Singularity”
In Saylor’s “21 Rules of Bitcoin,” the emphasis on Bitcoin’s “irreplaceability” and “paradigm shift” is evident. For example, Rule 7 asserts that “Bitcoin is the only true asset in the universe,” a viewpoint rooted in Bitcoin’s decentralized ownership mechanism. Unlike traditional assets such as real estate or stocks, Bitcoin is controlled through private keys, eliminating the need for third-party custodians. This ownership model disrupts the traditional economic definition of “property rights,” similar to the disruption caused by the Dutch East India Company’s stock issuance to physical trade in the 16th century.
Moreover, Rule 4, “Bitcoin is driven by chaos,” and Rule 5, “The only win-win game in a casino,” combine to illustrate Bitcoin’s anti-fragility. A prime example of this can be seen in MicroStrategy’s response to the global market turmoil caused by the COVID-19 pandemic in 2020. The company aggressively acquired Bitcoin, leveraging bond issuances and equity financing to continue increasing its holdings. As of February 2025, MicroStrategy holds over 400,000 Bitcoins (worth approximately $18 billion), with an annual compounded return rate of 62%, far outpacing the performance of the S&P 500. This strategy exploits the anticipated depreciation of fiat currencies amidst “chaos,” using Bitcoin as a hedge.
From MicroStrategy to Global Giants’ Strategic Shift
Saylor’s rules not only represent personal beliefs but have also been validated through MicroStrategy’s aggressive implementation. Rule 20, “Never Sell Bitcoin,” is directly reflected in the company’s asset strategy. Since 2020, MicroStrategy has allocated 90% of its cash flow to Bitcoin purchases and amplified its returns through “intelligent leverage” (such as issuing Bitcoin-backed bonds). This has led to a “super-linear” correlation between the company’s stock price and Bitcoin’s price: every 10% increase in Bitcoin’s value results in an average 15% rise in MicroStrategy’s stock price.
This model has inspired other traditional enterprises to follow suit. For instance, in 2024, Saylor submitted a report to Microsoft proposing that the company allocate 30% of its $70 billion cash reserves to Bitcoin. He predicted that this move could increase Microsoft’s market value by $1 to $4.9 trillion. Although Microsoft has not adopted the proposal, tech giants like Tesla and Square have begun to invest in Bitcoin. As of 2025, global public companies hold over 1.2 million Bitcoins, a 500% increase since 2020, validating Rule 15, “Bitcoin belongs to everyone,” in its inclusive potential.
From “Chaos Hedge” to “Digital Capital Infrastructure”
Saylor’s rules forecast Bitcoin’s evolution from a “marginal asset” to a “core reserve.” Rule 13 refers to Bitcoin as the “orange pill,” a remedy to economic issues—a metaphor that was substantiated during the U.S. Federal Reserve’s aggressive interest rate hikes in 2024. As global sovereign debt default risks rose, on-chain Bitcoin transactions surged by 300%, as institutions increasingly viewed Bitcoin as a substitute for “digital gold.” Meanwhile, Rule 12, “All models will be destroyed,” points to the failure of traditional valuation systems. For example, MicroStrategy’s price-to-earnings ratio has diverged from its software business fundamentals and is now driven entirely by the value of its Bitcoin holdings.
The far-reaching effect is seen in Rule 21, “Spread Bitcoin with love,” which highlights the community-driven impact. Saylor has championed Bitcoin as a global monetary standard through public speaking engagements, corporate collaborations, and educational initiatives (such as open-source Bitcoin financial models). A notable example of this is El Salvador’s issuance of the world’s first Bitcoin-denominated sovereign bond in 2023, raising $650 million for the construction of “Bitcoin City,” inspired by MicroStrategy’s leveraged strategy.
The Risk Boundaries of the Rules
Despite the idealism within Saylor’s rules, it is necessary to examine their limitations. For instance, Rule 9 advises purchasing Bitcoin with “funds you can’t afford to lose,” which contradicts the traditional investment principle of “investing only idle money.” MicroStrategy itself faced significant unrealized losses of nearly $3 billion when Bitcoin’s price plunged to $16,000 in 2022, forcing the company to restructure its debt to alleviate liquidity pressures. Additionally, Rule 20, “Never Sell,” may overlook the necessity of portfolio rebalancing. If Bitcoin’s volatility remains higher than that of traditional assets, an overly concentrated position in Bitcoin could amplify financial risk for businesses.