Bitwise Chief Investment Officer Matt Hougan says Strategy's $7.2 billion buying streak, financed through STRC preferred shares, drove most of Bitcoin (BTC)'s 20% rebound from February lows.

Strategy Powers Bitcoin Rally

In a memo published Tuesday, Hougan acknowledged that ETF inflows and renewed long-term holder accumulation contributed to the move. He still called the firm formerly known as MicroStrategy the single biggest factor.

Bitcoin is up roughly 20% from its February lows, trading around $76,000. Strategy added $7.2 billion worth of BTC over the past eight weeks. Spot ETFs, by comparison, pulled in $3.8 billion since Mar. 1.

The firm now holds 818,334 BTC, leaving it 181,666 coins short of one million. Galaxy Research's Alex Thorn projects Strategy could overtake Satoshi Nakamoto's estimated 1.1 million BTC stash within two years at the current pace.

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STRC Issuance And Schiff's Warning

Hougan expects Strategy to keep tapping STRC, a perpetual preferred stock paying 11.5% annually, as junk bonds yield under 7% and capital rotates out of private credit. He estimates room for another $10 billion to $15 billion in issuance at current Bitcoin prices.

Total obligations stand at 33% of Strategy's Bitcoin holdings, or $21 billion against $63 billion. Hougan said investors would likely raise concerns once that figure approaches 50%.

Economist Peter Schiff pushed back this week, calling the model a death spiral. STRC's dividend has climbed seven straight months, rising from 9% at its July 2025 launch to today's 11.5%, a trajectory critics see as proof the structure depends on fresh capital raises rather than operations.

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