Bitcoin Defies Six-Month Trend, Rises After STRC 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. With Bitcoin currently trading at $79,000, this marks a significant shift from its price of $75,679.78 just a week ago. The ex-dividend date, which occurred on April 15, typically leads to a decline in STRC's value by the amount of the payout, as new buyers are no longer entitled to receive the dividend. However, Bitcoin's strength has persisted despite this adjustment. STRC has been utilized as a funding instrument for Strategy's Bitcoin purchases over the past few months. Following the ex-dividend date, STRC's shares usually recover gradually, taking around two weeks to return to their par value of $100. The stock is currently trading at $99.47. This recovery is crucial, as it allows Strategy, the largest publicly traded company holding Bitcoin, to use its at-the-market program to issue new shares and 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 further Bitcoin purchases. The company recently disclosed a significant Bitcoin purchase of 34,164 BTC, which initially had a limited impact on the price. However, the current Bitcoin rally appears to be driven by positioning, with perpetual futures funding rates remaining negative, indicating that bearish sentiment still dominates. As prices rise, short sellers are forced to close their positions, creating a short squeeze that accelerates gains. Additionally, the persistent Coinbase premium, where Bitcoin trades at a higher price on the US exchange compared to offshore platforms, suggests steady spot demand in the US market.