MicroStrategy’s preferred stock slump didn’t stop Bitcoin’s rally — for the first time in six months
MicroStrategy’s perpetual preferred, STRC, went ex-dividend on April 15. Historically, Bitcoin has tended to slide in the week after that payout; this time, however, BTC bucked the pattern. Bitcoin was trading around $75,000 on the ex-dividend date and has since pushed toward $79,000 — the first week-after-payout rise following STRC’s dividend event in six months.
Why the STRC drop usually matters
STRC is a dividend-bearing perpetual preferred with a $100 par value. Like most dividend securities, its price drops on the ex-dividend date by roughly the size of the payout because new buyers no longer get that dividend. Typically, STRC then spends roughly two weeks clawing back toward par, after which MicroStrategy can more readily tap its at-the-market (ATM) program: issuing new shares near par and using proceeds to buy more Bitcoin. STRC is currently trading around $99.47, close to that $100 trigger level, underscoring its role as an aggressive funding tool for the company’s Bitcoin accumulation.
MicroStrategy’s stock and Bitcoin buys
MicroStrategy (MSTR) shares were trading more than 9% higher on Wednesday at about $178, suggesting the company may be preparing to tap its common-stock ATM program to fund additional Bitcoin purchases. The company recently disclosed one of the largest single acquisitions on record — 34,164 BTC — with Bitcoin initially remaining in the $75,000 area after that disclosure.
What’s driving the Bitcoin move?
The rally looks partly structural. Perpetual futures funding rates are still negative, indicating that bearish positioning dominates (shorts are paying longs). When prices rise in that environment, shorts are often forced to cover, creating a short squeeze that accelerates gains. At the same time, a persistent Coinbase premium — Bitcoin trading at a slight premium on the U.S. exchange versus offshore venues — points to steady spot demand from U.S. buyers.
Bottom line
STRC’s ex-dividend dynamics have been an important part of MicroStrategy’s funding playbook for buying Bitcoin. This week’s unusual post-dividend Bitcoin strength, combined with STRC nearing par and MSTR rallying, raises the prospect that MicroStrategy could soon issue more shares under its ATM programs to add to its already massive BTC holdings.
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