MicroStrategy's Dominance in Bitcoin Purchases Could Be Ending, Says Bitwise CIO

Matt Hougan, Chief Investment Officer at Bitwise, has indicated that MicroStrategy’s reign as the leading buyer of Bitcoin (BTC) may be concluding. The firm appears to be transitioning from a position of accumulation to one of selling its Bitcoin holdings.

Recently, MicroStrategy's preferred stock has experienced significant declines, prompting a new capital plan that allows the company to sell Bitcoin for three key purposes: fulfilling dividend obligations, covering interest payments, and funding share or debt repurchases.

Transition in Strategy's Operations

In the past, MicroStrategy was regarded as a consistent source of Bitcoin demand. Hougan noted that the company had previously expanded its treasury through offerings of ATM equity and preferred stock, frequently acquiring thousands of BTC weekly.

However, recent developments suggest a shift in strategy. Between May 26 and May 31, MicroStrategy sold 32 BTC valued at approximately $2.5 million, marking its first sale since December 2022. This change is attributed to a steep decline in the company’s STRC preferred stock, which recently hit a record low of 71.2 amid Bitcoin's drop below $60,000.

New Financial Strategy Introduced

On June 29, 2026, MicroStrategy announced its Digital Credit Capital Framework, allowing the periodic sale of BTC to raise up to $1.25 billion for its U.S. dollar reserves. This framework aims to address dividend commitments more favorably than issuing new shares and offers funds for share or debt buybacks.

Hougan characterized this development as a critical structural change, suggesting that MicroStrategy may alternate between buying and selling Bitcoin based on market conditions. However, he believes the firm will not become a significant seller, estimating any sales could be limited to a few billion dollars annually.

Potential Successors to MicroStrategy's Role

With MicroStrategy potentially reducing its impact, Hougan anticipates that institutional investors, including global banks, asset managers, pension funds, and sovereign wealth funds, will step in to fill the void as major Bitcoin buyers. He cited recent actions from financial institutions such as Morgan Stanley's launch of proprietary Bitcoin ETFs and Wells Fargo's inclusion of Bitcoin in model portfolios as indicators of this trend.

Despite some outflows from Bitcoin ETFs in 2026, these investment vehicles have attracted over $50 billion since their introduction in 2024. Hougan remains optimistic about the market's prospects, suggesting it may be nearing a bottom and poised for a bullish turnaround this fall.