Bitcoin’s recent gains are being supported by a combination of short squeeze dynamics and consistent buying interest from U.S. investors.
Strategy Inc.’s perpetual preferred stock, STRC, is now a week beyond its April 15 ex-dividend date. With Bitcoin BTC rising to around $79,000 from roughly $75,000 at the time of the payout, this marks the first time in six months that BTC has advanced in the week following the dividend event.
The move underscores bitcoin’s resilience, even as STRC typically experiences a price adjustment after going ex-dividend. In recent months, the instrument has served as an aggressive funding channel for Strategy’s continued bitcoin accumulation.
As is standard with dividend-paying securities, STRC fell on its ex-dividend date by approximately the value of the payout, since new buyers are no longer entitled to receive it. From there, the stock عادة recovers gradually, often taking close to two weeks to return toward its $100 par value. It is currently trading near $99.47.
This rebound is key. Once STRC trades back at par, Strategy—the largest publicly traded holder of bitcoin—can resume issuing shares via its at-the-market (ATM) program, using the proceeds to acquire more BTC.
Strategy shares climbed more than 9% on Wednesday to around $178, suggesting the company may already be utilizing its common stock ATM program to fund further bitcoin purchases.
The firm recently disclosed one of its largest acquisitions, buying 34,164 BTC, even as prices initially remained range-bound near $75,000.
At the same time, derivatives market positioning is playing a role in bitcoin’s rally. Perpetual futures funding rates remain negative, indicating that short sellers are paying long positions to maintain exposure—evidence that bearish sentiment is still prevalent.
As prices rise in this environment, short sellers are increasingly forced to close positions, fueling a short squeeze that helps accelerate bitcoin’s upward momentum.
About The Author
More Stories
Morgan Stanley is positioning to play a central role in managing reserves for stablecoin issuers.
$2 billion flowed into Bitcoin ETFs over eight days while short-term holders started trimming positions under the radar.
Bitcoin’s upward move is stalling amid rising Japanese inflation and escalating Iran war–driven uncertainty in markets.