Strategy’s Bitcoin Dominance Fading After STRC Turmoil, Says Bitwise

Strategy’s long run as Bitcoin’s biggest corporate buyer may be winding down after last week’s turmoil around its STRC offering, according to Bitwise chief investment officer Matt Hougan. He said the company has been a one-way source of Bitcoin demand for years, but that role is likely fading as institutions like banks, asset managers, pensions and sovereign wealth funds step in instead.

STRC Selloff Rattles Confidence

Trust in Strategy’s model cracked when its Stretch preferred stock fell sharply below its $100 par value, raising doubts about the sustainability of its dividend payouts. The drop coincided with Bitcoin sinking to a 21-month low near $58,190. Strategy responded by pledging to sell Bitcoin if needed and boosting its dollar reserves to $2.55 billion.

Strive CEO Matt Cole argued the reaction was overblown, noting Strategy’s holdings represent just 4% of Bitcoin’s total supply. Hougan added the company still holds $52 billion in liquid assets against $7 billion in debt, meaning it isn’t at immediate financial risk.