Bitcoin Overcomes Six-Month Slump Following Strategy's Ex-Dividend Date

For the first time in six months, bitcoin has seen an increase in the week following the ex-dividend date of Strategy's perpetual preferred stock, STRC, which occurred on April 15. As of now, bitcoin's price is around $79,000, up from $75,000 at the time of the ex-dividend date, showcasing the cryptocurrency's resilience despite the typical post-dividend adjustment in STRC. Over the past few months, STRC has been used as an aggressive funding tool 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, since new buyers are no longer eligible to receive the dividend. Following this decline, the shares usually recover over a two-week period, returning to their par value of $100. Currently, STRC is trading at $99.47. This recovery is significant, as once the stock returns to its par value, Strategy, the largest publicly traded company holding bitcoin, can utilize its at-the-market program to issue new shares and use the proceeds to purchase additional bitcoin. Strategy's shares have risen by over 9% to $178, with the company likely using its common stock ATM program to fund more 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 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. Additionally, the persistent Coinbase premium, where bitcoin trades slightly higher on the US exchange than on offshore platforms, points to steady spot demand from the US market.