MicroStrategy’s preferred stock, STRC, has broken a six-month pattern — and Bitcoin played a starring role.
One week after STRC’s April 15 ex‑dividend date, Bitcoin has climbed to roughly $79,000, reversing the usual post‑payout lag that has accompanied STRC for the past half year. At the time of the April 15 ex‑dividend, Bitcoin was trading around $75,000, so the move higher comes despite the typical ex‑dividend adjustment in the preferred.
Why STRC matters
- STRC is MicroStrategy’s perpetual preferred instrument the company has used aggressively to fund Bitcoin purchases. Like most dividend‑paying securities, STRC typically falls on the ex‑dividend date by roughly the payout amount; new buyers after that date aren’t entitled to the dividend. Historically the shares have then taken about two weeks to recover toward their $100 par value. STRC is currently trading at about $99.47.
- That recovery is operationally important: once STRC (or MicroStrategy’s common stock) is trading at or near par, the company can effectively tap its at‑the‑market (ATM) programs to issue new shares and use proceeds to buy more Bitcoin.
Equities and balance‑sheet moves
MicroStrategy’s common shares jumped more than 9% on Wednesday to about $178, suggesting the company may continue to use its common stock ATM to fund additional BTC accumulation. The firm also disclosed a massive purchase — 34,164 BTC — one of the largest single acquisitions on record, with the price initially holding in the $75k area.
Market dynamics behind the rally
The rally shows hallmarks of positioning-driven upside:
- Perpetual futures funding rates remain negative, meaning shorts are effectively paying longs to hold positions. When prices rise in that context, short sellers often scramble to cover, creating a short squeeze that can accelerate gains.
- A persistent Coinbase premium — Bitcoin trading slightly higher on the U.S. exchange than offshore venues — points to steady U.S. spot demand.
Bottom line
STRC’s quicker recovery this cycle and the corresponding strength in MicroStrategy’s common stock clear the way for further ATM‑funded Bitcoin buys. Combined with funding‑rate dynamics and a Coinbase premium, the market setup has produced a velocity that could push BTC higher so long as those structural conditions persist.
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