Bitcoin (CRYPTO: BTC) is up roughly 20% from its February lows, and Bitwise Chief Investment Officer Matt Hougan says Strategy Inc. (NASDAQ:MSTR) chairman Michael Saylor is the single biggest factor behind the move.

Strategy Added $7.2 Billion In 8 Weeks

Strategy purchased $7.2 billion of Bitcoin over the past eight weeks, outpacing the $3.8 billion in ETF inflows since March 1. 

The purchases were financed entirely by issuing STRC, Strategy’s perpetual preferred stock currently yielding 11.5% annually.

Hougan explained that Strategy’s goal with STRC is to have it trade at $100 per share while offering high dividend yields. 

The company maintains that price by adjusting the yield up or down. If STRC trades below $100, Strategy can increase the interest rate to attract buyers. If it trades above $100, Strategy can issue more shares or lower the rate.

STRC started trading at a 9% yield in July 2025 and has since jumped to 11.5% as Strategy periodically lifted the dividend to keep the share price near $100.

How Strategy Pays The 11.5% Dividend

Strategy pays the dividend mostly by raising money from other investors. The company issues more shares and uses those proceeds to fund dividend payments.

The preferred stock is backed by Strategy’s $63 billion Bitcoin holdings. Strategy has $8 billion of debt and $14 billion of preferred equity. 

Preferred stock sits above regular shareholders in the capital stack, meaning Strategy would pay off its $8 billion in debt first, then $14 billion in preferred equity, leaving $41 billion for common shareholders in a liquidation.

Bitwise: More STRC Issuance Coming

At current Bitcoin prices, Strategy could hypothetically pay existing dividends for 42 years. If Bitcoin rises 20% annually, Strategy could pay the dividends forever.

Hougan said he’d bet on Strategy continuing to issue STRC. Rumors suggest the company could have raised even more capital in its last offering if it wanted. 

With junk bonds yielding less than 7% and investors fleeing private credit, STRC’s 11.5% yield backed by a more than $40 billion Bitcoin cushion looks attractive.

The number to watch is Strategy’s total obligations as a percentage of Bitcoin holdings. Today that sits at 33%: $21 billion in obligations against $63 billion in Bitcoin. If that number pushes toward 50%, investors will start asking questions.

At today’s Bitcoin prices, that gives room for another $10 billion to $15 billion in STRC issuance. More if Bitcoin rallies.

“I don’t think we’re done STRC-ing at all,” Hougan wrote.

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