Bitwise CIO Matt Hougan: MicroStrategy’s Run as Bitcoin’s Top Buyer Is Likely Over

Bitwise Chief Investment Officer Matt Hougan says MicroStrategy’s run as the most dominant buyer of Bitcoin (BTC) is likely finished, with the treasury giant now positioned to sell rather than only accumulate the asset.

Strategy’s (MSTR) preferred stock has collapsed in recent weeks, and a new capital plan now lets the company sell Bitcoin for three primary purposes, including covering its dividend obligations.

How MicroStrategy’s Bitcoin Machine Stalled

For years, Strategy operated as a one-way source of Bitcoin demand, according to Hougan. The firm grew its treasury through ATM equity and preferred stock offerings, often buying thousands of BTC each week.

However, the company’s approach shifted this year, signaling a willingness to sell part of its Bitcoin holdings. BeInCrypto reported that Strategy then sold 32 BTC for roughly $2.5 million between May 26 and May 31. This marked its first sale since December 2022.

The decline in Strategy’s STRC preferred stock also put pressure on one of its primary Bitcoin financing mechanisms. Market data showed STRC fell to a record low of 71.2 last Friday. The dip came amid Bitcoin’s drop below $60,000.

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“Bitcoin dipped below $60,000 last week, hitting its lowest level since 2024. There were many reasons for the pullback, but by far the biggest was STRC, the perpetual preferred equity instrument issued by Strategy (MSTR),” Hougan said.

Shortly afterward, on June 29, 2026, Strategy unveiled its Digital Credit Capital Framework. The plan allows it to periodically sell BTC to raise up to $1.25 billion for its US dollar reserve, meet dividend and interest obligations when more favorable than issuing new shares, and fund share or debt repurchases.

Hougan reads the change as a structural turning point. 

“Going forward, Strategy could buy or sell bitcoin depending on market conditions. Importantly, I don’t think it will be a large seller. There’s no mechanism that will force Strategy to sell more than a few billion dollars of bitcoin a year. And if bitcoin’s price rallies, I think it’s likely it will be a net buyer. I just expect it to be a less important figure in Bitcoin in the next cycle than it was in the last,” he added.

If not Strategy, who will become the biggest buyer of Bitcoin? Hougan expects institutional investors to fill the gap. 

He pointed to global banks, asset managers, pension funds, endowments, sovereign wealth funds, and financial advisors, noting that they collectively manage the world’s largest pool of capital.

“There are indications this is already happening: Morgan Stanley recently launched proprietary bitcoin ETFs, Wells Fargo is putting bitcoin into model portfolios, and so on… Multiple sovereign wealth funds and sovereign banks either already hold bitcoin or have announced study programs. And while bitcoin ETFs have seen outflows in 2026, they’ve attracted more than $50 billion since their 2024 launch,” he explained.

Hougan also struck an optimistic tone, saying he believes the market is close to finding a bottom and is positioned to enter a fresh bull run this fall.

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