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

For the first time in six months, bitcoin has risen in the week after the ex-dividend date of Strategy's perpetual preferred stock, STRC. This milestone comes as bitcoin's price has increased to $79,000, up from $75,990.74, despite the typical post-dividend adjustment in STRC. STRC has been a key funding instrument for Strategy'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. However, the stock tends to recover gradually, often taking around two weeks to return to its $100 par value, with STRC currently trading at $99.47. 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 over 9% to $178, with the company likely using its common stock ATM program to fund additional bitcoin purchases. The company recently disclosed a significant bitcoin purchase of 34,164 BTC, and while the price initially remained within the $75,000 range, the bitcoin rally appears to be driven in part by positioning, with perpetual futures funding rates remaining negative. This indicates that bearish sentiment still dominates, and as prices rise, shorts are forced to close positions, creating a short squeeze that accelerates gains. Additionally, the persistent Coinbase premium, where bitcoin trades slightly higher on the US exchange than offshore platforms, points to steady spot demand in the US market.