Bitcoin rally driven by Strategy's $7.2B buys, says Bitwise CIO

Bitwise’s chief investment officer (CIO), Matt Hougan, told clients that the recent Bitcoin rebound was driven primarily by systematic purchases from Strategy Inc., Michael Saylor’s bitcoin-treasury company. According to Hougan, roughly $7.2 billion of net buys over an eight-week period were the single biggest factor behind the roughly 20% rally from February lows.

Hougan’s note highlights that Strategy has financed much of its bitcoin accumulation by issuing a variable-rate perpetual preferred security (STRC), with proceeds largely deployed to buy BTC on the open market. Industry reports indicate Strategy added about 3,273 BTC between April 20 and April 26 (roughly $255 million), bringing its publicly reported holdings to approximately 818,334 BTC—surpassing the estimated Bitcoin held on behalf of clients by major asset manager BlackRock.

From a market-microstructure perspective, sustained corporate buying of this magnitude tightens available free float and amplifies price sensitivity to new demand. Bitcoin traded near the mid-$70,000s in late April, up about 20–21% from the Feb. 6 low of $62,822; Hougan also noted spot Bitcoin ETFs contributed roughly $3.8 billion in inflows since March 1, but he identified Strategy’s purchases as the dominant force.

In broader financial context, Strategy’s model—raising capital through yield-bearing perpetual instruments to fund BTC accumulation—reshapes how corporate treasury strategies interact with digital-asset markets. While STRC’s reported ~11.5% yield has attracted investor demand and thus provided a funding channel for further buys, the structure introduces leverage-like dynamics and contingent risks if Bitcoin were to decline significantly or liquidity conditions tighten.

Looking ahead, Hougan and other market observers expect Strategy’s buying to remain an important price driver as long as it continues issuing preferred securities and deploying proceeds to the market. Key variables to watch include STRC issuance volumes, Strategy’s weekly buy cadence, ETF flow trends and macro risk appetite; together these will determine whether the rally can sustain or whether profit-taking and volatility will cap near-term gains.