Bitcoin breaks Strategy’s STRC ex-dividend date slump for the first time in six months
Bitcoin is seeing a short squeeze dynamic and steady U.S. demand to support gains.
What to know:
- Bitcoin is trading higher one week after the STRC ex dividend date for the first time in six months, breaking a pattern of post payout weakness.
- Bitcoin’s move higher is being driven by negative funding rates, triggering short covering, alongside a persistent Coinbase premium that signals continued spot demand from U.S. investors.
Like most dividend paying securities, STRC declines on its ex-dividend date by approximately the value of the payout, since new buyers are no longer entitled to receive it.
Following that drop, the shares tend to recover gradually, often taking about two weeks to move back toward their $100 par value. STRC is currently trading at $99.47.
This recovery is important because once the stock returns to par, Strategy the largest publicly traded company holding bitcoin, can utilize its at the market (ATM) program, issuing new shares at and use the proceeds to buy additional bitcoin.
Strategy shares are more than 9% higher on Wednesday at $178 at the time of writing, with the company likely tapping its common stock ATM program to fund additional bitcoin purchases.
