Bitcoin Defies Six-Month Trend, Surges Past Strategy's Ex-Dividend Date Slump

For the first time in six months, Bitcoin has risen in the week following the ex-dividend date of Strategy's perpetual preferred stock, STRC. As of now, Bitcoin is trading at $79,000, marking a significant increase from its price of $75,000 at the time of the ex-dividend date. This surge in Bitcoin's price 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. Typically, STRC declines on its ex-dividend date by approximately the value of the payout, as new buyers are no longer entitled to receive it. However, following this drop, the shares tend to recover gradually, often taking about two weeks to move back toward their $100 par value. Currently, STRC is trading at $99.47. The recovery of STRC is crucial because once the stock returns to par, Strategy, the largest publicly traded company holding Bitcoin, can utilize its at-the-market (ATM) program, issuing new shares and using the proceeds to buy additional Bitcoin. Strategy's shares have surged over 9% to $178, with the company likely tapping its common stock ATM program to fund additional Bitcoin purchases. The company recently disclosed its third-largest Bitcoin purchase of 34,164 BTC, while the price initially stayed within its $75,000 range. The Bitcoin rally appears to be driven in part by positioning, with perpetual futures funding rates remaining negative, indicating that bearish sentiment still dominates. As prices rise in this environment, shorts are forced to close positions, creating a short squeeze that accelerates gains. Additionally, a persistent Coinbase premium, where Bitcoin trades slightly higher on the US exchange than offshore platforms, points to steady spot demand.