The company’s stock almost halved over the past month to now around $85. And STRC, a form of Strategy stock that executive chairman Michael Saylor has repeatedly touted, has broken its $100 peg. Now, the asset, which is designed to pay holders a rich monthly dividend, is trading at slightly above $75.
On Friday, the S&P 500 rose slightly while the Nasdaq dropped 0.6%. Meanwhile, the Dow Jones was essentially flat.
Hougan sees the recent slide across crypto as a sign the current downtrend is nearing its end, especially as digital asset treasuries unwind. Over the past year, a wave of Strategy copycats began to inject public companies with cryptocurrencies with the hopes of seeing their stocks pop, but that trade has fallen out of favor. “Those got over their skis, and the market is sort of squeezing that excess capital out,” added Hougan.
Still, the Bitwise executive predicts that the market will stabilize when and if Congress passes long-awaited crypto legislation. Once that uncertainty clears, he expects a rebound in the second half of the year as Wall Street firms continue to invest in blockchain technology.
