Bitcoin Overcomes Six-Month Slump Following STRC Ex-Dividend Date

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. The stock's ex-dividend date was on April 15, and since then, Bitcoin has surged to $79,000. At the time of the ex-dividend date, Bitcoin was trading around $75,000, showcasing its resilience despite the typical post-dividend adjustment in STRC. STRC has been used as an aggressive funding instrument for the company's Bitcoin purchases over the past few months. Typically, STRC declines by the value of the payout on its ex-dividend date, as new buyers are no longer entitled to receive the dividend. Following this drop, the shares usually recover gradually, taking about two weeks to return to 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 program to issue new shares and use the proceeds to buy more Bitcoin. Strategy's shares have risen by over 9% to $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, and although the price initially remained within the $75,000 range, the Bitcoin rally appears to be driven by positioning. Perpetual futures funding rates are negative, indicating that bearish sentiment still dominates, with short sellers paying long positions to hold their trades. As prices rise, 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.