Bitcoin Posts Gains for the First Time in Six Months Following STRC Ex-Dividend Date

For the first time in six months, Bitcoin (BTC) has seen a rise in the week following the ex-dividend date of Strategy's perpetual preferred stock, STRC. As of now, BTC is valued at $79,000, marking a significant increase from its value of $75,000 at the time of the ex-dividend date on April 15. This surge in Bitcoin's value highlights its continued strength despite the typical post-dividend adjustment in STRC, which has been used as an aggressive funding instrument for the company's Bitcoin purchases over the past few months. STRC typically declines by the value of the payout on its ex-dividend date, as new buyers are not entitled to receive the dividend. Following this decline, the shares usually recover gradually over a two-week period and move back towards their $100 par value. Currently, STRC is trading at $99.47. The recovery of STRC is crucial as it enables Strategy, the largest publicly traded company holding Bitcoin, to utilize its at-the-market (ATM) program. This allows the company to issue new shares and use the proceeds to purchase additional Bitcoin. On Wednesday, Strategy's shares were more than 9% higher at $178, with the company likely using its common stock ATM program to fund additional Bitcoin purchases. The company recently disclosed its third-largest Bitcoin purchase of 34,164 BTC. Although the price initially remained within the $75,000 range, the Bitcoin rally appears to be driven in part by positioning. Perpetual futures funding rates remain negative, indicating that short sellers are paying long positions to hold their trades. This suggests that bearish sentiment still dominates the market. As prices rise in this environment, shorts are forced to close their positions, creating a short squeeze that accelerates gains. Furthermore, the persistent Coinbase premium, where Bitcoin trades slightly higher on the US exchange than on offshore platforms, points to steady spot demand.