Analyst: STRC dividend demand drives mid-month BTC rallies

An analysis suggests that demand for Strategy's perpetual preferred stock, STRC, is creating a predictable mid-month surge in Bitcoin (BTC) demand that influences its price. According to The Block, Vetle Lunde, head of research at K33, explained that while STRC pays dividends at the end of each month, the shareholder record date is the 15th. This prompts investors to buy STRC ahead of the dividend payment, causing its price to recover to its $100 par value. Strategy then issues additional shares through an at-the-market (ATM) program, using the proceeds to purchase BTC. Lunde noted that this pattern showed signs of re-emerging on May 11, when STRC's price returned to $100 and its trading volume hit the highest level since April 15. However, Lunde also pointed out that STRC's recovery to its par value has been slower this month, with additional purchases through this mechanism amounting to only one BTC, which could signal stagnating demand.