Svmuu reported that Vetle Lunde, Head of Research at K33, stated that Strategy’s perpetual preferred stock, STRC, may be becoming a significant factor driving Bitcoin’s mid-month upward movements.
Lunde noted that STRC dividends are paid on the last day of each month, with the ex-dividend date set around the 15th of each month. As Strategy issues additional shares via an ATM mechanism when the STRC price exceeds its $100 par value and uses the proceeds to purchase BTC, the increase in demand for STRC before each ex-dividend date tends to drive 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. Strategy’s total Bitcoin holdings have now reached 818,869 BTC, valued at about $65.7 billion.
However, K33 also pointed out that the speed at which STRC has returned to its par price this month has slowed compared to earlier periods. Recently, the tool was used to accumulate only 1 BTC, suggesting that market demand may be approaching a phase of temporary stabilization.