Strategy’s STRC may be fueling recurring mid-month bitcoin rallies, K33 says
Strategy's STRC preferred stock may be driving mid-month Bitcoin rallies by facilitating BTC purchases before ex-dividend dates.Summary
Research firm K33 suggests that Strategy's perpetual Stretch preferred stock (STRC) is likely contributing to recurring mid-month Bitcoin rallies. This is because STRC pays dividends on the last day of each month, with ownership determined by the ex-dividend date on the 15th. Strategy issues new STRC shares when the stock trades above its par value, using the proceeds to buy Bitcoin. As STRC typically trades near par before the ex-dividend date, this boosts trading volumes and allows Strategy to acquire more Bitcoin. While Strategy faces increasing dividend obligations long-term, the near-term dynamic appears supportive for Bitcoin as Strategy absorbs BTC supply ahead of these dates. Recent data shows STRC has become a primary driver of Strategy's Bitcoin acquisitions, though demand may be plateauing this month. Despite this, K33 anticipates another significant Bitcoin purchase announcement from Strategy soon. Meanwhile, Bitcoin perpetual futures traders remain defensively positioned with negative funding rates.
(Source：The Block)