news Bitcoin is recovering: who's behind the rise?

[DarkenBiz]

Bitwise Investment Director Matt Hougan believes that the main driver of BTC's current recovery isn't ETFs or even large institutional investors in general.

The key factor is the aggressive buying by Strategy, the largest corporate Bitcoin holder.

What's important:
— Inflows into spot ETFs were less significant
— Strategy's BTC accumulation strategy played a key role
— The company is actively raising capital through STRC perpetual preferred shares

Why are investors flocking to STRC?
— Yield ~11.5%
— Backed by over $40 billion in BTC assets
— Alternative to bonds (<7%) and private lending

According to Hougan:
— Strategy can pay dividends for up to 42 years at current prices
— With BTC growing at 20% annually, the payments could become virtually endless

Conclusion: the market is increasingly dependent not only on demand but also on the strategies of the largest holders.

 

[biggie]

Hi

that’s a nice pyramid to be on top of

heard they wanna fork some old bit.
how do they know?

imo….

 

[DarkenBiz]

Hi

that’s a nice pyramid to be on top of

heard they wanna fork some old bit.
how do they know?

imo….

Hello!
Calling it a “pyramid” sounds catchy, but it doesn’t really fit.

MicroStrategy is buying a real (and volatile) asset — Bitcoin — not redistributing money between participants.

And the “fork” point doesn’t make sense — they don’t control the network.

The real question is sustainability: how long they can keep raising capital and how the model holds up if BTC drops. That’s where the actual debate is.