TLDR
- Bitcoin is up about 20% from its February lows.
- Strategy added $7.2 billion in Bitcoin over eight weeks.
- Spot Bitcoin ETFs attracted $3.8 billion since March 1.
- Strategy now holds 818,334 BTC after its latest purchase.
- STRC offers an annual yield of about 11.5%.
Bitcoin’s recent rebound has been driven largely by Strategy’s renewed BTC purchases, with Bitwise Chief Investment Officer Matt Hougan saying the rally could continue as the company raises capital through its STRC preferred stock.
Hougan said multiple factors have supported the move, including spot BTC ETF inflows and renewed buying from long-term holders. ETF issuers have attracted about $3.8 billion in inflows since March 1, but Strategy’s purchases have been larger, with the company adding $7.2 billion in bitcoin over the past eight weeks.
Strategy Purchases Lead Bitcoin Rebound
Strategy, formerly known as MicroStrategy, has continued expanding its BTC treasury through regular purchases. The company bought 3,273 BTC for about $255 million last week, bringing total holdings to 818,334 BTC.
That total places Strategy among the largest Bitcoin holders in the world. Its holdings now exceed the amount held by BlackRock’s IBIT on behalf of clients, based on recent market estimates.
Hougan said Strategy’s buying has created steady demand in the market during a period when Bitcoin has been recovering from its February low. Bitcoin traded below $65,000 earlier this year before moving back toward the mid-$70,000 range.
The company’s accumulation strategy has remained central to its market identity. Its Bitcoin holdings are viewed by investors as both a treasury reserve and a source of exposure to the asset’s long-term price performance.
STRC Preferred Stock Fuels Buying Power
Hougan said Strategy’s latest purchasing strength is linked to STRC, a perpetual preferred stock that trades like equity but pays a bond-like dividend. The instrument currently offers an annual yield of about 11.5%.
The structure gives Strategy a way to raise capital without issuing standard debt. The company can then use proceeds to buy more Bitcoin, expanding its balance sheet exposure.
Hougan said demand for STRC appears strong because its yield is higher than many lower-rated bonds, while the instrument is backed by Strategy’s large Bitcoin position. He said the company may raise billions more through STRC if market demand remains available.
The structure also creates risk. As Strategy issues more STRC, it takes on larger dividend obligations. Hougan said the company could pay existing dividends for decades at current Bitcoin prices, but long-term sustainability depends heavily on the Bitcoin price path.
If Bitcoin continues rising, Strategy’s balance sheet becomes stronger, and the dividend burden becomes easier to manage. If Bitcoin stagnates for a long period, the preferred stock obligations could become more difficult to support.
ETF Demand Adds Support to Market
Strategy has not been the only source of Bitcoin demand. Spot bitcoin ETFs have drawn billions of dollars since March, helping support liquidity and investor access. Long-term holders have also resumed accumulation, reducing the amount of Bitcoin available for active trading.
These combined sources of demand have helped Bitcoin recover despite broader uncertainty in risk assets. Bitcoin was recently trading around $76,000, down less than 1% on the day, but still well above its February low. Hougan said the market setup suggests Strategy’s buying could keep supporting BTC for some time. If the company continues issuing STRC and using proceeds for Bitcoin purchases, it could remain a major source of demand.
The scale of Strategy’s holdings has also drawn comparisons to Satoshi Nakamoto’s estimated 1.1 million BTC. Strategy would need to acquire roughly 277,666 more Bitcoin to match that figure. The pace of future purchases remains uncertain and has varied across reporting periods. However, the company’s recent activity shows that its capital-raising strategy is still closely tied to Bitcoin accumulation.
