Wu learned that Bitwise Chief Investment Officer Matt Hougan stated in a memo that the recent volatility of Strategy's (MSTR) perpetual preferred stock STRC is part of deleveraging at the tail end of the crypto cycle. Hougan noted that STRC had attracted funds through high yields and trading near its $100 par value, with Strategy using the proceeds to purchase BTC. However, as BTC and MSTR declined, the market began to worry about its ability to pay dividends, causing STRC to once drop to around $75. Hougan said that Strategy may sell BTC from time to time in the future to support dividend payments, meaning that its phase as a one-way buyer of BTC may have ended, and the next phase of major BTC buyers could shift to institutional funds.