Bitwise CIO Says Strategy’s Role As Bitcoin’s Biggest Buyer Is Likely Over

Bitwise CIO Matt Hougan said Strategy’s role as Bitcoin’s most dominant buyer is likely ending after recent pressure across MSTR and STRC.

Hougan wrote in his July 1 STRC and MSTR memo that Strategy has been “the most dominant bitcoin buyer in the world” and a one-way source of demand for years. He added: “Those days are likely over.”

The comment follows several weeks of pressure on Strategy’s capital structure. STRC, the company’s Variable Rate Series A Perpetual Stretch Preferred Stock, broke sharply below its $100 stated amount and traded as low as $75. Hougan said the move reflected investor concern over Strategy’s ability and willingness to keep funding preferred-stock dividends while Bitcoin and MSTR traded lower.

Strategy’s recent Digital Credit framework changed that setup by adding a USD reserve policy, a revised STRC dividend policy, repurchase authorizations and a BTC monetization program. The company also stopped automatically defending STRC’s $100 level through rate increases.

Strategy Can Now Buy Or Sell BTC

Strategy authorized a BTC Monetization Program that allows Bitcoin sales for three main uses: up to $1.25 billion to fund the USD Reserve, additional funding for preferred dividends and debt interest, and repurchases of Digital Credit Securities or MSTR common stock.

The same release listed a USD Reserve of about $2.55 billion as of June 28. Strategy said the reserve represented about 17.4 months of coverage for current annual preferred-stock dividends and interest expense, while the reserve plus authorized BTC monetization capacity represented about 25.9 months of current liquidity coverage.

Hougan said Strategy could buy or sell Bitcoin depending on market conditions under the new framework. He also said he does not expect Strategy to become a large seller, with no mechanism forcing sales beyond a few billion dollars a year. If Bitcoin rises, he said Strategy could still be a net buyer.

The change lands after several direct market tests. Grayscale Head of Research Zach Pandl said a Strategy Bitcoin sale could restore more confidence than another STRC dividend increase. Mike Novogratz also pushed back on forced-seller fears, arguing that Strategy was not under immediate pressure to liquidate Bitcoin.

Institutions Named As Next Demand Source

Hougan said the next major Bitcoin demand source is more likely to come from institutions than from Strategy. He named global banks, asset managers, pension funds, endowments, sovereign wealth funds and financial advisors as the buyer groups most likely to lead the next phase.

He pointed to broader institutional adoption through Bitcoin ETFs, advisory platforms, model portfolios and state-level Bitcoin reserve activity. U.S. spot Bitcoin ETFs have still attracted more than $50 billion since their 2024 launch, even after outflows in 2026.

Strategy remains the largest public Bitcoin treasury company. The company holds 847,363 BTC, acquired at an average purchase price of $75,651 per coin. MSTR recently traded near $93.39, while Bitcoin traded near $61,839.