Bitcoin Defies Six-Month Trend, Surges Past Strategy's STRC 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, which occurred on April 15. At the time of the ex-dividend date, Bitcoin was valued at around $75,000, and it has since increased to $79,000, showcasing the cryptocurrency's resilience despite the typical post-dividend adjustment in STRC. Over the past few months, STRC has been utilized as an aggressive funding instrument for the company's Bitcoin purchases. Typically, dividend-paying securities like STRC experience a decline on their ex-dividend date, equivalent to the payout value, as new buyers are no longer entitled to receive the dividend. Following this decline, the shares usually recover gradually over a two-week period, returning to their $100 par value. Currently, STRC is trading at $99.47. The recovery of STRC is crucial, as once the stock returns to par, Strategy, the largest publicly traded company holding Bitcoin, can leverage its at-the-market (ATM) program to issue new shares and use the proceeds to purchase additional Bitcoin. On Wednesday, Strategy's shares surged over 9% to $178, with the company likely utilizing its common stock ATM program to fund further Bitcoin purchases. The company recently disclosed its third-largest Bitcoin purchase of 34,164 BTC, with the price initially remaining within the $75,000 range. However, 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, short sellers 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.