Bitwise Chief Investment Officer Matt Hougan believes that the era of Strategy (MSTR) as the unrivaled corporate force in Bitcoin accumulation is coming to an end. In a detailed market analysis, Hougan outlined how a recent operational shift — and the rise of heavyweight institutional capital — will reshape demand in the next cycle.
Strategy, the company formerly known as MicroStrategy, adopted a new framework for its preferred stock STRC that permits it to periodically sell Bitcoin to cover dividend obligations. “In past cycles, Strategy was a one-way buyer, which created a powerful and predictable market force,” Hougan explained. “Now, the company has the flexibility to sell if needed. This doesn’t mean they will, but it fundamentally changes their market impact.” He added that while there is no mechanism forcing Strategy to offload more than a few billion dollars in Bitcoin annually, and the firm could remain a net buyer if prices recover, its role as a constant demand driver is diminished.
Looking ahead, Hougan expects institutional investors to become the primary buyers. He traced Bitcoin’s demand cycles from cypherpunks to Asian investors, then to US retail, the Grayscale Bitcoin Trust, and Strategy. The next phase, he argued, will be fueled by global banks, asset managers, pension funds, endowments, sovereign wealth funds, and financial advisers. This transition is already visible: Morgan Stanley has launched proprietary Bitcoin ETFs, Wells Fargo added BTC exposure to model portfolios, and Texas became the first state to fund a strategic Bitcoin reserve. Meanwhile, sovereign wealth funds and central banks in various jurisdictions are evaluating allocations.
Despite 2026 outflows from US spot Bitcoin ETFs, Hougan noted that the products have amassed over $50 billion since their 2024 launch and are now accessible on most major financial adviser platforms. In a complementary view, HashKey Group Senior Researcher Tim Sun told CryptoPotato that a slowdown in Strategy’s purchases could be beneficial. “If the company is forced to slow or pause its accumulation, it would help unwind the distortion in supply and demand created by its financing-driven buying model,” Sun said, suggesting Bitcoin would then establish a stronger price floor based on genuine market demand, resulting in a healthier market structure.
