TheBlock
Bitwise CIO Matt Hougan called the STRC selloff a classic end-of-cycle pattern, saying he expects a new bitcoin bull market to begin this fall.
STRC, Strategy's preferred stock, traded as low as $75 from its $100 par value before the company overhauled its framework on June 29 and let the price float instead of defending $100. That pivot effectively ended the implicit put under the preferred, which Hougan read as the kind of forced-selling reset that typically marks the late stage of a bitcoin cycle rather than a fresh leg down.
Why it matters
Strategy is the largest publicly listed corporate holder of $BTC, and its preferred-share complex is now the marginal funding vehicle for additional accumulation. When the preferred itself trades below par and the company stops defending the level, the structure stops subsidising buys. A clean reset to a floating price lets the preferred find a new equilibrium rather than grinding toward redemption, and Hougan's read is that the heavy lifting on forced selling is now behind the trade.
Market impact
The call matters less for Strategy's own stock than for how the rest of the market reads bitcoin's cycle clock. An end-of-cycle framing implies that the drawdown has already done the cleansing work, and that the next impulse higher is a new bull leg rather than a bear-market bounce. Watch $BTC spot price action through the summer: a sustained hold above prior lows would be the first confirmation that Hougan's thesis is playing out.
Frequently asked questions
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What did the Bitwise CIO say about Strategy's STRC preferred stock?
Matt Hougan called the STRC selloff a classic end-of-cycle pattern, and said he expects a new bitcoin bull market to begin this fall once forced sellers clear.
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Why did STRC drop below $100 par value?
STRC traded as low as $75 from its $100 par value before Strategy overhauled its framework on June 29 and let the price float instead of defending the par level.
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Why is the STRC reset significant for bitcoin's cycle?
Strategy's preferred-share complex funds additional BTC accumulation, and an end to the implicit par put is the kind of forced-selling reset Hougan reads as a late-cycle cleansing rather than a fresh leg down.
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What would confirm Hougan's end-of-cycle thesis?
A sustained hold above prior lows in BTC spot through the summer would be the first confirmation that the drawdown has done its cleansing work and the next move is a new bull leg.
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How does Strategy's preferred stock funding model work?
Strategy issues preferred shares like STRC at $100 par and uses the proceeds to accumulate bitcoin, so the preferred functions as a marginal funding vehicle for additional BTC buys.
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