MicroStrategy’s STRC Fuels Mid‑Month Bitcoin Rallies

K33 Research says MicroStrategy’s perpetual preferred stock, STRC, has been driving mid‑month rallies in bitcoin by trading at or above its $100 par value and funding bitcoin purchases ahead of the monthly ex‑dividend date.

K33’s head of research, Vetle Lunde, explained the mechanics: STRC pays dividends on the last day of each month while ownership for the payout is set by the May 15 ex‑dividend date. Investors tend to buy STRC before the 15th to capture that payout, which pushes the preferred stock toward par and raises trading volumes. When STRC trades at or above $100, MicroStrategy can issue additional shares through an at‑the‑market program and use the proceeds to acquire bitcoin.

K33’s data show STRC‑funded purchases rose this year. MicroStrategy acquired 4,467 BTC in January, 22,131 BTC in March and about 46,872 BTC in April via STRC. The company’s total holdings were reported at 818,869 BTC, valued at roughly $65.7 billion in its latest disclosure. STRC currently offers an annualized yield near 11.5 percent.

K33 flagged early signs of the pattern in May. On Monday, May 11, STRC recovered to $100 and trading volumes climbed to their highest level since April 15 ahead of the Friday ex‑dividend date. “The instrument pays dividends on the last day of each month, while share ownership is determined by the ex‑dividend date on the 15th,” Lunde wrote, adding that the volume spike and price action created conditions for MicroStrategy to absorb meaningful bitcoin supply before the dividend cutoff.

MicroStrategy has proposed changing STRC’s dividend schedule to twice per month in a filing, saying the adjustment could reduce reinvestment lag, enhance liquidity, improve market efficiency and increase price stability for the preferred shares. K33 noted a more frequent payout schedule could shorten the time between capital raises and subsequent bitcoin purchases.

K33 also reported signs that STRC demand may be plateauing. The firm added 1 BTC via STRC so far this month, a slower pace than in March and April. Lunde wrote that rising investor interest in STRC could raise MicroStrategy’s long‑term dividend obligations and cautioned that demand trends merit monitoring. “The week is still young, yesterday saw a promising spike in volumes in STRC, and by next Monday we are prepared for yet another massive BTC purchase announcement from MicroStrategy,” he added.

On derivatives markets, K33 found defensive positioning among traders. Bitcoin perpetual futures funding rates remain negative on both seven‑day and 30‑day averages, with the 30‑day rate nearing a 74‑day streak of negative funding. The firm said the recent normalization in funding rates appears driven more by lower trading activity than renewed bullish leverage, as open interest and volumes have remained subdued.

K33 also highlighted a strong short‑term link between bitcoin and equities: the 30‑day correlation with the Nasdaq is near record highs, while bitcoin has slightly lagged the recent equity rally. The firm noted recent price moves have been closely tied to broader equity trends rather than to independent shifts in crypto market positioning.