Strategy’s large-scale buying is again being highlighted as a key driver behind bitcoin’s recent rebound.

The Block reported on April 28 that Bitwise Chief Investment Officer Matt Hougan (맷 호건) identified Strategy as the biggest single buyer in the latest bitcoin upswing.

Hougan said bitcoin is trading around $76,000, up about 20 percent from its February low. The market has cited spot ETF inflows and long-term holders resuming purchases as factors behind the rise, but he focused on Strategy buying an additional roughly $7.2 billion of bitcoin over the past eight weeks. Over the same period, inflows into U.S. spot bitcoin ETFs were about $3.8 billion.

Strategy’s aggressive buying is linked to an unusual funding structure. The company has recently been issuing a perpetual preferred share called STRC. STRC trades like a stock but has a bond-like dividend structure, and its annualised yield is reported to be about 11.5 percent. Strategy is using the proceeds to buy more bitcoin.

Hougan said the structure works in a way that further boosts the company’s financial capacity as it aligns with bitcoin price gains. If the value of its bitcoin holdings rises, the leverage risk from preferred-share dividend obligations could become relatively lower, he said. He assessed that, at current prices, Strategy could cover its existing dividends for more than 40 years. He added that it would be a problem if bitcoin does not rise until 2068, but if it increases 20 percent a year, the company could pay dividends perpetually.

The market is also focusing on STRC’s high yield. With junk bond yields having recently fallen below 7 percent, some analysis says a double-digit yield product based on bitcoin is emerging as an alternative for investors. Hougan also mentioned market views that Strategy could have raised more funds in its recent issuance if it had wanted to.

Strategy also bought an additional 3,273 bitcoin last week for about $255 million. That brought its total holdings to 818,334 bitcoin. That is about 4 percent of the total bitcoin supply.

The trend also dovetails with changes in bitcoin’s market structure. In the past, retail investors and miners had a big influence on prices, but ETFs and corporate treasury strategies have recently emerged as key variables. Some analysis also says that if structures like Strategy’s expand, raising funds in capital markets and repeatedly buying bitcoin, pressure to reduce circulating supply could increase further.

Risks also exist. If bitcoin prices fall for an extended period or stagnate, the high dividend burden could put pressure on the company’s finances. The sustainability of the Strategy model ultimately depends on how long bitcoin’s upward trend continues, it says.