That projection, from Galaxy Digital research head Alex Thorn, puts into sharp focus just how much one company has come to shape the crypto market.
A Preferred Stock Is Funding The BuyingStrategy — the treasury firm led by Michael Saylor — has poured $7.2 billion into Bitcoin over the past eight weeks, according to Bitwise chief investment officer Matt Hougan.
He called it the “single biggest factor” behind Bitcoin’s climb of roughly 20% from its February low of $62,820. As of Wednesday, Bitcoin was trading near $76,550.
Investors are drawn to it partly because it offers an 11.5% annual yield — well above what junk bonds are currently paying.
Hougan said that with private credit losing favor among investors, STRC’s yield backed by a Bitcoin reserve worth more than $40 billion looks attractive. He expects Strategy to raise billions more through the instrument.
Strategy’s Bitcoin buys have become a weekly occurrence. Its latest purchase — 3,273 coins for $255 million between April 20 and 26 — pushed its total holdings to 818,334 BTC, edging past BlackRock’s roughly 812,300 coins held on behalf of its clients.
If Bitcoin grows at 20% annually, Saylor has argued, those payments could continue indefinitely. Hougan appears to share that view, saying the purchases are likely to continue “for some time to come.”
Wallets attributed to Nakamoto hold a little over a billion Bitcoin — about 5.5% of the total supply. Strategy would need to acquire roughly 277,660 more coins to match that figure.
Its weekly purchases have ranged widely this year, from as few as 850 coins in February to 34,160 on a single day in April, so the timeline depends heavily on how aggressively the company continues buying.
Featured image from MetaAI, chart from TradingView
