Bitwise CIO Matt Hougan said that Strategy has been the largest driver of Bitcoin’s latest rally, after adding $7.2 billion in BTC over the past eight weeks. In his memo, Hougan said Bitcoin was up roughly 20% from its February lows and trading around $76,000.
The argument matters because it shifts attention from broad market momentum to one company’s financing machine. Hougan said ETF buying has contributed $3.8 billion since March 1 and long-term holders have also returned, but Strategy’s purchases have been the single biggest factor. Those buys were largely funded through STRC, a perpetual preferred equity instrument whose dividend yield has risen from 9% to 11.5%.
The next point to watch is whether Strategy keeps issuing STRC to buy more Bitcoin. Hougan said he expects billions more in issuance, while noting that investors may begin asking harder questions if Strategy’s total obligations approach 50% of its Bitcoin holdings.
Source: Bitwise CIO memo.
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