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

For the first time in six months, Bitcoin (BTC) has risen in the week following the ex-dividend date of Strategy's (MSTR) perpetual preferred stock, STRC. This milestone comes as BTC surpassed $79,000, up from around $75,000 at the time of the ex-dividend date on April 15. The STRC has been a key instrument for Strategy's aggressive 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. However, after this initial drop, the shares usually recover within two weeks, returning to their $100 par value. Currently, STRC is trading at $99.47. This recovery is crucial, as it enables Strategy, the largest publicly traded company holding bitcoin, to utilize its at-the-market (ATM) program, issuing new shares and using the proceeds to buy more bitcoin. Strategy's shares have surged over 9% to $178, with the company likely leveraging 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 by positioning, with perpetual futures funding rates remaining negative. This indicates 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. Furthermore, the persistent Coinbase premium, where bitcoin trades slightly higher on the US exchange than on offshore platforms, suggests steady spot demand.