K33: Strategy’s STRC May Be Driving Bitcoin’s Mid-Month Rally

Odaily Planet Daily reported that K33 Research Head Vetle Lunde stated that Strategy’s perpetual preferred stock, STRC, may be becoming a key factor driving Bitcoin’s mid-month price increases.

Lunde pointed out that STRC dividends are paid on the last day of each month, with the ex-dividend date set around the 15th. Since Strategy issues additional shares through an ATM mechanism when the STRC price exceeds its $100 par value and uses the proceeds to purchase BTC, an increase in demand for STRC ahead of the ex-dividend date often leads to more BTC buying.

Data shows that the scale of BTC purchases by Strategy through STRC has grown from 4,467 BTC in January of this year to approximately 46,872 BTC in April. Currently, Strategy’s total Bitcoin holdings have reached 818,869 BTC, valued at around $65.7 billion.

However, K33 also noted that the speed at which STRC returned to its par price this month has slowed compared to before, with only 1 BTC recently acquired through this instrument, indicating that market demand may be approaching a temporary plateau.