Why Is Bitcoin Showing Mid-Month Strength?
Bitcoin’s strong mid-month returns in March and April may be tied to demand for Strategy’s perpetual Stretch preferred stock, STRC, according to research and brokerage firm K33.
STRC pays dividends on the last day of each month, but ownership eligibility is set by the ex-dividend date on the 15th. K33 Head of Research Vetle Lunde said this structure has created recurring investor demand ahead of the ex-dividend date, supporting Strategy’s ability to raise capital and buy bitcoin.
“The instrument pays dividends on the last day of each month, while share ownership is determined by the ex-dividend date on the 15th,” Lunde said.
How Does STRC Feed Into Strategy’s Bitcoin Purchases?
Strategy issues additional STRC shares through its at-the-market program when the stock trades at or above its $100 par value. The company then uses proceeds from those sales to buy bitcoin.
STRC typically trades near par before the ex-dividend date as investors buy the shares to qualify for payouts. That demand can lift trading volumes, allowing Strategy to issue more shares and absorb more bitcoin supply.
K33 said STRC has become a larger driver of Strategy’s bitcoin purchases this year, rising from 4,467 BTC in January to 22,131 BTC in March and nearly 46,872 BTC in April. Strategy’s total holdings now stand at 818,869 BTC, worth about $65.7 billion.
Investor Takeaway
Is STRC Demand Starting to Slow?
The pattern may be weakening. Lunde noted that STRC has taken longer to return to par this month, while Strategy has added just 1 BTC through the instrument so far. That suggests investor demand may be nearing a plateau after strong activity in March and April.
Still, K33 said early signs of renewed activity appeared this week. STRC recovered to $100 on Monday, May 11, while trading volumes reached their highest level since April 15.
“This Friday marks another STRC ex-dividend date, and on Monday, May 11, we already saw early signs of the pattern repeating, with STRC recovering to $100 while trading volumes rose to their highest level since April 15,” Lunde said.
Strategy has also proposed moving STRC dividend payments to twice per month, saying the change could reduce reinvestment lag, improve liquidity, increase market efficiency and support price stability.
Investor Takeaway
Why Does Bitcoin Positioning Still Look Defensive?
Despite the supportive STRC dynamic, bitcoin perpetual futures traders remain cautious. K33 said both 7-day and 30-day average funding rates are still negative, with the 30-day funding rate nearing a record-long negative streak of 74 consecutive days.
Lunde said recent funding rate normalization appeared to reflect low trading activity rather than stronger bullish positioning, with open interest stable and volumes subdued.
K33 also noted that bitcoin’s recent rally has been closely tied to equities, with its 30-day correlation to Nasdaq near record highs. Even so, bitcoin has slightly lagged the latest equity surge, challenging the view that BTC is simply a high-beta Nasdaq proxy.
The result is a mixed market setup: Strategy’s STRC cycle may provide short-term buying support, but derivatives positioning remains defensive and broader risk appetite continues to influence bitcoin’s direction.
