Strategy’s (MSTR) perpetual preferred stock, STRC, is now one week past its April 15 ex-dividend date. With Bitcoin Now at $79,000, this is the first time in six months that BTC has increased in the week following the payment event.
At the time of the ex-dividend date, bitcoin was around $75,000, highlighting BTC’s continued strength despite STRC’s typical post-dividend adjustment. Over the past few months, STRC has served as an aggressive financing instrument for the company’s bitcoin purchases.
Like most dividend-paying stocks, STRC declines on its ex-dividend date by approximately the value of the payment, since new buyers are no longer entitled to receive it.
After this drop, stocks tend to gradually recover, often taking about two weeks to return to their par value of $100. STRC is currently trading at $99.47.
This recovery is important because once the stock returns to par, Strategy, the largest publicly traded company holding Bitcoin, can use its market-to-market (ATM) program, issue new shares, and use the proceeds to purchase additional Bitcoin.
Strategy shares are up more than 9% Wednesday at $178 at the time of writing, with the company likely using its common stock ATM program to fund additional bitcoin purchases.
Strategy revealed the third largest Bitcoin purchase ever, 34,164 BTC, as the price initially remained within its $75,000 range.
However, Bitcoin’s rally appears to be partly due to positioning. Funding rates for perpetual futures remain negative, meaning short sellers are paying for long positions to maintain their trades, a sign that bearish sentiment still dominates.
As prices rise in this environment, short sellers are forced to close their positions, creating a short squeeze that accelerates gains.
At the same time, the persistent premium at Coinbase, where bitcoin trades slightly higher on the US exchange than on offshore platforms, indicates stable spot demand.
