Bitcoin (BTC) has demonstrated notable resilience amid escalating geopolitical tensions, experiencing a general upward trend since late February. This resurgence can be significantly attributed to the actions of MicroStrategy, a firm recognized for its substantial Bitcoin investments, which has played a pivotal role in driving the current rally. According to Bitwise Chief Investment Officer Matt Hougan, MicroStrategy’s continued large-scale purchases have been a crucial factor in the cryptocurrency’s performance.
In a memo released on Tuesday, Hougan outlined various elements contributing to Bitcoin’s rise. He highlighted significant exchange-traded fund (ETF) inflows, totaling $3.8 billion since March 1, along with a resurgence in buying by long-term holders. However, he emphasized that MicroStrategy has emerged as the “single biggest factor” in this upward momentum, having acquired an impressive $7.2 billion in Bitcoin over the past eight weeks.
As a result, Bitcoin’s price has climbed approximately 20% from its lows in February, currently hovering around $76,000. The sustainability of this rally has become a matter of speculation, and much of it hinges on MicroStrategy’s future buying strategy. The company now boasts a significant holding of 818,334 BTC, which leaves it just 181,666 coins short of the milestone of one million.
Industry observers like Alex Thorn, head of Galaxy Research, suggest that if MicroStrategy maintains this pace, it could soon surpass the estimated 1.1 million BTC owned by Bitcoin’s pseudonymous creator, Satoshi Nakamoto, within two years.
Hougan also foresees that MicroStrategy’s BTC accumulation trajectory shows no signs of slowing. The firm has been funding its Bitcoin purchases primarily through the sale of STRC shares. Recent analyses have indicated that, in 2026 alone, MicroStrategy’s STRC sales have financed ten times more Bitcoin acquisition than the entire U.S. spot ETF market combined. The appealing payout of 11.5% on STRC shares positions them favorably in a market where lower yields are prevalent.
With a Bitcoin cushion now exceeding $40 billion, there is optimism regarding MicroStrategy’s capacity for further investment. Hougan raised concerns about the firm’s obligations, which include both debt and preferred equity, currently at 33% of its Bitcoin holdings—worth approximately $21 billion against $63 billion in BTC. Should this ratio approach 50%, it could trigger inquiries from investors. Nevertheless, he believes there remains substantial room for additional STRC issuance, especially if Bitcoin prices continue to rally.
Despite the bullish outlook, MicroStrategy’s strategy has not been without skepticism. Some, like economist Peter Schiff, have voiced criticism, warning that the firm’s Bitcoin-backed yield approach could be heading towards a precarious situation.
As the cryptocurrency market evolves, all eyes remain on MicroStrategy to gauge the trajectory of Bitcoin in the near future.
