- Bitwise CIO Matt Hougan said Bitcoin’s 20% rebound from February lows was driven largely by Strategy, ETF issuers and long-term holders.
- Hougan said Strategy added US$7.2 billion (AU$10.37 billion) of Bitcoin over eight weeks, supported by STRC issuance.
- Strategy’s April 27 filing showed 818,334 BTC holdings after a 3,273 BTC purchase funded by common-stock ATM proceeds.
Bitwise CIO Matt Hougan said Strategy’s high-yield STRC preferred stock could keep fuelling Bitcoin’s rally after the company added US$7.2 billion (AU$10.37 billion) of BTC in eight weeks, though its latest buy used common-stock proceeds.
Hougan wrote that Bitcoin (BTC) had risen roughly 20% from its February lows and was trading around US$76,000 (AU$109,440), adding that spot Bitcoin ETFs bought US$3.8 billion (AU$5.47 billion) since March 1 and long-term holders resumed accumulation.
But Strategy had been the single biggest buyer. STRC is Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, a yield-paying instrument designed to trade near US$100 (AU$144) per share. Hougan said the dividend began at 9% after launch and had risen to 11.5% as Strategy adjusted the rate to keep demand near par.
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Preferred Stock Flywheel
Strategy priced its initial STRC offering in July 2025 at US$90 (AU$129.60) per share, estimating net proceeds of US$2.474 billion (AU$3.56 billion). The company said at the time it intended to use proceeds for general corporate purposes, including Bitcoin acquisition and working capital.
Strategy’s February results showed STRC had reached US$3.4 billion (AU$4.90 billion) in aggregate stated amount as of Feb. 1, with a then-current dividend rate of 11.25%. Chief executive Phong Le said the variable dividend mechanism had helped keep STRC near its US$100 (AU$144) stated amount despite a weaker Bitcoin price environment.
Hougan argued that the structure remains attractive while junk bonds yield less than 7% and investors pull back from private credit. He estimated Strategy could raise another US$10 billion to US$15 billion (AU$14.4 billion to AU$21.6 billion) through STRC at current Bitcoin prices before obligations drew heavier scrutiny.
Strategy’s most recent disclosure confirmed continued buying, but not through STRC that week. Its April 27 8-K showed the company acquired 3,273 BTC for US$255 million (AU$367.2 million) during April 20-26 at an average US$77,906 (AU$112,184.64) per Bitcoin, using proceeds from common-stock ATM sales.
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