Bitwise CIO Matt Hougan Says Strategy Has No Need to Sell Bitcoin Despite Market Stress

Hougan says Strategy has no need to sell Bitcoin despite market stress and index concerns.

MSCI review may trigger index outflows, yet Hougan notes past events caused limited impact.

Strategy holds strong cash reserves and a $60B Bitcoin stash trading above its cost basis.

There are many concerns across the crypto market, yet Strategy selling its Bitcoin is not one of them. Bitwise CIO Matt Hougan said the company has no need to liquidate its holdings, even with market stress and index review pressure shaping the current narrative.

Matt Hougan Addresses Market Concerns Around Strategy’s Bitcoin Position

Matt Hougan stated that Strategy does not face any situation that would force it to sell Bitcoin. His memo said fears of forced liquidation do not match the company’s financial condition. He added that the current stress comes from index review discussions and general market weakness.

Moreover, MSCI signaled that Strategy could face removal from its investable indexes. The provider said crypto treasury firms resemble holding companies rather than operating firms. Strategy disagreed with that view and pointed to its software division and financial structure around Bitcoin. Hougan explained that MSCI’s final decision will depend on its methodology

He referenced estimates showing index-linked funds may need to sell up to $2.8 billion in Strategy stock if removal occurs. Even so, he noted that past index events produced smaller market reactions than expected, as seen during Strategy’s Nasdaq-100 inclusion. He also said that recent price pressure may already reflect these expectations. He added that Strategy stock often follows broader market direction and Bitcoin price trends rather than index flows alone.

Company Cash Position and Bitcoin Reserves

Hougan addressed concerns that Strategy may need to liquidate Bitcoin to manage debt. He said the company holds $1.4 billion in cash, which covers interest payments for about 18 months. He added that major debt does not mature until 2027, which removes near-term pressure.

Furthermore, Strategy holds a $60 billion Bitcoin reserve that trades above its average acquisition cost. Hougan said past drawdowns never pushed the company to sell, even during deeper stress in 2022. He also noted that the voting structure gives Michael Saylor strong control, reducing the chance of forced changes.

He added in his memo that current fears rely on incorrect assumptions about cash flow. Bitcoin trades near levels well above Strategy’s long-term cost basis. He said the firm has enough runway to maintain its approach despite volatility, showing that Strategy selling Bitcoin is not a concern today

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