The Bitcoin rally driven by Strategy could last a long time, according to Bitwise
Strategy snapped up $7.2 billion in Bitcoin over eight weeks since early March. Bitwise CIO Matt Hougan calls this the top reason for the recent Bitcoin surge. His April 28 letter to investors explains the funding tricks behind these buys. It also shows why they might keep coming.
A hidden tool drives the huge Bitcoin rally
In short
Bitcoin climbed about 20% from February lows. It now trades near $76,000. Strategy grabbed $7.2 billion in Bitcoin over 8 weeks. Matt Hougan of Bitwise says this sparks the rally. STRC funds these buys. It's a nonstop capital tool with an 11.5% yearly payout. Strategy holds 815,061 BTC worth roughly $63 billion. It has $21 billion in bonds, or 33% of its BTC.
Hougan sees $10 to $15 billion more STRC room left. How does STRC fund Strategy's huge Bitcoin buys? Strategy skips its cash piles to buy all that Bitcoin. Michael Saylor's firm created STRC. It's endless preferred debt, part bond and part stock. No end date. It aims for 11.5% yearly dividends, paid monthly.
The steps stay simple. Strategy sells STRC shares at $100 each. Buyers get that strong return. Strategy takes the cash and buys Bitcoin right on the market.
STRC started in July 2025 at 9% dividends. The firm raised it to 11.5% to hold the share price near $100. On April 18, 2026, it switched to payouts every two weeks to steady the price more.
Bitcoin and STRC: Safe long-term or too risky? Can Strategy keep paying that dividend forever? Matt Hougan crunches numbers in his new note to answer.
The firm owns $63 billion in Bitcoin now. Debt sits at $8 billion. Preferred shares like STRC total $14 billion. All debts add to $22 billion, just 33% of BTC value. At today's prices, it covers dividends for 42 years.
This safety rests on one big if: Bitcoin holds steady. Hougan puts it this way:
If Bitcoin stalls until 2068, Strategy fails. But a 20% yearly rise lets it pay forever.
The plan ties straight to Bitcoin's ups and downs. A big drop could spike the debt-to-BTC ratio past 33%.
Hougan flags danger at 50% debt to BTC. With $21 billion bonds against $63 billion BTC, it can issue $10 to $15 billion more STRC.
Bitcoin in 2026: What STRC means for crypto buyers The recent Bitcoin jump goes beyond charts. Real, steady buys push it up.
Each STRC sale lets Strategy buy spot Bitcoin. This shrinks market supply. The last one raised $2.18 billion for 22,048 BTC. That's among its biggest weekly hauls since late 2024.
Hougan sees a loop that builds itself:
Bitcoin price climbs. Strategy's books grow stronger. STRC looks better. The firm pulls in more cash for more Bitcoin. Long-haul holders and big investors get the message: Buying won't quit soon.
One fact stands out. Strategy keeps hunting Bitcoin. For crypto fans, it's a steady long-term boost. Watch that debt-to-BTC ratio close.