Bitcoin’s recent rally is largely fueled by Strategy purchases: Bitwise's Hougan

Bitcoin treasury steadfast Strategy and its perpetual preferred stock, STRC, person been the “single biggest factor” successful Bitcoin’s caller rally, which has jumped 20% from its February low, according to Bitwise main concern serviceman Matt Hougan.

Over the past 8 weeks, Strategy has added $7.2 cardinal successful Bitcoin, Hougan said successful a study published Tuesday. 

“Yes, determination person been aggregate drivers of the caller rally, including beardown buying from ETFs, $3.8 cardinal since March 1, and renewed purchases by semipermanent holders. But Strategy has been the azygous biggest factor,” helium said. 

Bitcoin has traded betwixt $75,849 and $79,321 implicit the past 7 days, according to CoinGecko. It was trading astatine astir $76,486 arsenic of Wednesday, up 21% from its Feb. 6 debased of $62,822.

Strategy is the largest publically listed firm Bitcoin holder. It bought 3,273 Bitcoin for $255 cardinal between April 20 and April 26, bringing full holdings to 818,334 BTC. 

Source: Lookonchain

Bitcoin buys are acceptable to continue, expert says

Strategy typically makes play Bitcoin purchases. Its latest buying spree pushed its full holdings past those of planetary plus manager BlackRock, which holds astir 812,300 coins connected behalf of its clients.

Hougan speculates that Strategy’s purchases volition “continue for immoderate clip to come,” driven by the issuance of STRC, the company’s perpetual preferred stock, which pays a fixed dividend to investors for arsenic agelong arsenic the institution operates. 

“Strategy issues STRC due to the fact that it wants to bargain much Bitcoin. Most of the superior raised by issuing STRC is utilized to acquisition BTC connected the unfastened market,” helium said.

Related: 80% of Strategy's ‘Stretch’ buyers are mom-and-pop investors

“With junk bonds yielding little than 7% and investors fleeing backstage credit, STRC’s 11.5% output — backed by a much than $40 cardinal bitcoin cushion — looks peculiarly attractive. I fishy Strategy volition rise billions much done STRC,” Hougan added.

Saylor has antecedently claimed that the institution tin prolong dividend payments indefinitely if Bitcoin continues to grow. 

Hougan said that astatine existent prices, Strategy could “hypothetically wage existing dividends for 42 years.” However, if Bitcoin rises by 20% a year, it could “pay the dividends forever.”

Strategy could surpass Satoshi soon

If Strategy continues astatine its existent pace, its holdings could surpass those of Bitcoin creator Satoshi Nakamoto wrong the adjacent 2 years, according to Alex Thorn, caput of probe astatine crypto-focused fiscal services steadfast Galaxy Digital.

Source: Alex Thorn

Wallets believed to beryllium owned by Nakamoto hold 1.1 cardinal Bitcoin, representing astir 5.5% of the full supply. Strategy would request to bargain different 277,666 coins to lucifer Nakamoto.

However, Strategy’s Bitcoin purchases person varied significantly. The smallest bargain successful 2026 was 855 Bitcoin successful February, portion the largest truthful acold this twelvemonth was connected April 20 with 34,164 coins.

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