Bitcoin Rally Driven by MicroStrategy's $7.2B Purchases, Bitwise CIO Says Gains Could Continue

Gate News message, April 28 — Bitcoin has surged roughly 20% from its February lows to around $76,000, with MicroStrategy's aggressive purchasing strategy emerging as the single biggest driver of the recent rally, according to Bitwise Chief Investment Officer Matt Hougan. MicroStrategy has added $7.2 billion in Bitcoin over the past eight weeks by issuing STRC, a perpetual preferred stock that trades like equity but offers a bond-like dividend yield currently around 11.5% annually.

Hougan noted that while multiple factors have supported the rally—including $3.8 billion in ETF inflows since March 1 and renewed purchases by long-term holders—MicroStrategy's STRC issuance has been the dominant force. The instrument allows the company to raise capital without traditional debt constraints. Hougan expects MicroStrategy to continue issuing STRC to fund further Bitcoin purchases, as the 11.5% yield, backed by over $40 billion in Bitcoin holdings, appears attractive compared to junk bonds yielding less than 7%.

Hougan expressed optimism that Bitcoin's rally can last "for some time to come." He noted that at current prices, MicroStrategy could hypothetically pay existing dividends for 42 years. If Bitcoin appreciates 20% annually, the company could sustain dividend payments indefinitely, strengthening its balance sheet and reducing overleveraging risks.

Last week, MicroStrategy purchased 3,273 BTC for approximately $255 million, bringing its total holdings to 818,334 BTC. Bitcoin was trading at $76,173 on Tuesday, down less than 1% for the day.