Bitcoin (BTC) Rally Fueled by $7.2B Strategy Buys, Says Bitwise CIO
Bitcoin (BTC) has climbed 21% from its February low of $62,822, fueled in large part by consistent buying from Michael Saylor‘s Bitcoin treasury firm, Strategy. According to Bitwise chief investment officer Matt Hougan, Strategy’s massive $7.2 billion Bitcoin buying spree over the past eight weeks has been the “single biggest factor” behind the rally, outpacing other drivers like ETF inflows and long-term holder activity. Bitcoin was trading at $76,595 as of April 29, slightly off its weekly high of $79,321 but maintaining a solid recovery since February. Hougan highlighted that Strategys recent purchases, funded by its issuance of perpetual preferred stock (ticker: STRC), have had an outsized impact on the market. “Most of the capital raised by issuing STRC is used to purchase BTC on the open market,” Hougan said in a note. Massive Accumulation Puts Strategy Ahead of BlackRock Between April 20 and April 26, Strategy acquired 3,273 Bitcoin for $255 million, bringing its total holdings to an industry-leading 818,334 BTC. This figure surpasses BlackRocks estimated Bitcoin holdings of 812,300 coins, making Strategy the largest publicly listed corporate Bitcoin holder. Hougan also speculated that Strategy‘s buying could continue for the foreseeable future. The company’s STRC stock offers an 11.5% yield, which has attracted