For the first time in six months, bitcoin has increased during the week following the ex-dividend date of Strategy’s (MSTR) perpetual preferred stock, STRC. This occurred a week after April 15, with bitcoin priced at $79,295.37, up from roughly $75,000 on the ex-dividend date.
This marks a significant shift since STRC is commonly used as an aggressive funding tool for Strategy’s bitcoin acquisitions over recent months. Like other dividend-paying securities, STRC typically falls by about the payout amount on its ex-dividend date because new investors are not entitled to receive it. Typically, the stock gradually recovers and takes approximately two weeks to approach its $100 par value. Currently, STRC is trading at $99.47.
Reaching par is crucial as it enables Strategy — the largest publicly traded bitcoin holder — to execute its at-the-market (ATM) program by issuing new shares for purchasing additional bitcoin. On Wednesday, Strategy’s shares were more than 9% up at $178, likely indicating an activation of its common stock ATM program for further bitcoin investments.
Strategy recently announced its third-largest ever bitcoin purchase of 34,164 BTC while the price remained around $75,000 initially. The ongoing bitcoin rally seems partly driven by market positioning. Negative perpetual futures funding rates indicate that short sellers are compensating long holders to maintain their positions, suggesting prevailing bearish sentiment.
As prices increase in such conditions, shorts often liquidate positions, resulting in a short squeeze that propels further gains. Concurrently, the consistent Coinbase premium — where bitcoin trades slightly higher on this U.S. exchange compared to offshore platforms — reflects ongoing spot demand.