Summary
- Bitwise CIO Matt Hougan said Strategy has been the biggest driver of Bitcoin (BTC) gains since its February low.
- He said Strategy bought an additional $7.2 billion of Bitcoin over the past eight weeks and will likely raise additional billions of dollars through STRC (preferred stock).
- Hougan said Strategy’s structure could support dividend payments for decades at current prices, and that the scale of STRC issuance and whether additional purchases continue are the key variables.
Forecast Trend Report by Period
Strategy’s large-scale Bitcoin purchases have emerged as the main driver of Bitcoin’s recent rally.
Bitwise Chief Investment Officer Matt Hougan told The Block on April 28 that while several factors have helped lift Bitcoin since its February low, the biggest force behind the advance has been Strategy.
Strategy has bought about $7.2 billion of Bitcoin over the past eight weeks, he said.
Hougan also said the company will likely raise additional billions of dollars through STRC preferred stock to continue buying Bitcoin.
At current prices, Strategy’s structure could support dividend payments for decades, he said. If Bitcoin keeps rising, the model could remain sustainable over the long term.
The market is watching the impact of institution-led buying and structured financing on Bitcoin supply and demand. The scale of future STRC issuance and whether Strategy continues additional purchases remain the key variables.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
