Bitcoin Rally Driven by MicroStrategy's STRC Issuance Could Continue 'for Some Time,' Bitwise CIO Says

Gate News message, April 29 — Bitwise Chief Investment Officer Matt Hougan believes Bitcoin's recent rally can continue "for some time to come," driven primarily by MicroStrategy's issuance of STRC, a perpetual preferred stock that trades like equity but offers bond-like dividend yields.

Bitcoin has risen approximately 20% from its February lows and was trading around $76,000 on Tuesday (down less than 1% on the day at $76,173). Multiple factors have supported the rally, including $3.8 billion in ETF inflows since March 1 and renewed purchases by long-term holders. However, Hougan identified MicroStrategy as the single biggest driver, adding $7.2 billion in bitcoin over the past eight weeks. The company's STRC offering currently yields around 11.5% annually, providing the capital for continued bitcoin accumulation.

Hougan noted that at current bitcoin prices, MicroStrategy could theoretically pay existing dividends for 42 years. If bitcoin rises 20% annually, the company could sustain dividend payments indefinitely, strengthening its balance sheet and reducing overleveraging risks. MicroStrategy purchased 3,273 BTC last week for approximately $255 million, bringing total holdings to 818,334 BTC. Hougan expects the company to issue billions more in STRC, particularly as the 11.5% yield attracts investors fleeing riskier assets like private credit.