Bitwise CIO: Strategy of Continued Buying is Key Driver Behind Bitcoin's Recent Rally

Bitwise Chief Investment Officer Matt Hougan said Wednesday (April 29) that Bitcoin Treasury Company Strategy—along with its perpetual preferred stock STRC—has been the **single biggest factor** in Bitcoin’s recent rebound, which has seen the crypto rise 20% from its February low. Over the past eight weeks, Strategy has added $7.2 billion worth of Bitcoin to its holdings, Hougan noted. While he cited other drivers—including $3.8 billion in strong ETF inflows since March 1 and returning hodlers—he emphasized Strategy’s outsized impact: *“Strategy has been the single biggest factor all along.”* Strategy is the largest publicly traded corporate holder of Bitcoin. Between April 20 and 26, it purchased 3,273 BTC for $255 million, pushing total holdings to 818,334 BTC—surpassing global asset manager BlackRock’s ~812,300 BTC held on behalf of clients. Hougan expects Strategy’s buying to *“continue for quite some time”* fueled by STRC issuance. The perpetual preferred stock pays a fixed dividend as long as the company operates, and most capital raised via STRC has gone to buying BTC on the open market. With junk bond yields below 7% and investors exiting private credit, STRC’s 11.5% yield is *“particularly attractive,”* he said, adding he expects Strategy to raise *“tens of billions more”* through the stock. At current prices, Strategy could *“hypothetically pay the current dividend for 42 years”;* if Bitcoin rises 20% annually, it could *“pay dividends forever,”* Hougan noted. Galaxy Digital Head of Research Alex Thorn said Strategy could surpass Satoshi Nakamoto’s holdings in the next two years if it maintains its current pace. To match Satoshi’s holdings, Strategy would need to acquire an additional 277,666 BTC.