Bitwise Cio Says Strategy'S Strc Is The Engine Behind Bitcoin'S 20% Rally

@Strategy has emerged as the dominant force behind $BTC's recent recovery, according to Bitwise CIO @Matt_Hougan. In his latest weekly memo, Hougan identified the firm as the single biggest driver of Bitcoin's roughly 20% climb from February lows to around $76,000 — ahead of spot ETF inflows and renewed long-term holder buying.

The mechanism at the centre of that accumulation is $STRC. Strategy added $7.2 billion in bitcoin over the past eight weeks, funded primarily through STRC issuance rather than operating cash flow.

What Is STRC and How Does It Work?

STRC is a perpetual preferred equity instrument designed to trade near $100 per share. Strategy launched it with a 9% annual dividend yield and has since raised that figure to 11.5% to keep the instrument anchored near its target price. Each share carries a $100 liquidation preference and pays monthly dividends, with Strategy retaining the flexibility to adjust the rate based on Bitcoin's price or the firm's leverage ratio — a structure built to offer yield stability while keeping the market price close to par.

Critics have questioned whether the model resembles a Ponzi scheme, given that dividends are largely funded by new capital raises rather than operating income. Hougan rejected that framing. He pointed out that STRC sits above common shareholders in the capital stack and is backed by Strategy's approximately $63 billion Bitcoin position, set against $8 billion of debt and $14 billion of preferred equity — leaving total obligations at around 33% of Bitcoin holdings today.

How Much Room Is Left to Run?

Hougan flagged 50% as the threshold where investors would start asking harder questions about Strategy's leverage. At current Bitcoin prices, that gap leaves headroom for another $10 to $15 billion in STRC issuance. With investment-grade alternatives like junk bonds yielding under 7% and investors rotating out of private credit, Hougan argued that an 11.5% yield backed by a $40-plus billion Bitcoin cushion should continue finding willing buyers in the market.

The analysis positions @Strategy not just as a corporate Bitcoin holder but as an active structural force in the market — one whose continued fundraising capacity may shape BTC price action for months to come.

Sources:
Crypto Briefing — Bitwise CIO says Strategy's STRC could keep fueling Bitcoin's latest rally
Bitcoin Ethereum News — Strategy $10B Q2 revenue; STRC structure explained

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