Strategy Inc. (NASDAQ:MSTR) jumped from 4,467 Bitcoin (CRYPTO: BTC) purchases in January to 46,872 BTC in April using STRC preferred stock, creating a mid-month buying pattern that K33 Research says fuels recurring Bitcoin rallies.

STRC Ex-Dividend Date Drives Mid-Month Rallies

Bitcoin posted strong returns during the middle week of March and April. 

K33 Head of Research Vetle Lunde said the pattern could continue this week. STRC pays dividends on the last day of each month, while share ownership gets determined by the ex-dividend date on the 15th.

Strategy issues additional STRC shares via its at-the-market program whenever the stock trades at or above its $100 par value, using the proceeds to buy Bitcoin. 

STRC typically trades near par ahead of the ex-dividend date as investors position for payouts, boosting volumes and allowing Strategy to raise more capital.

“This Friday marks another STRC ex-dividend date, and on Monday, May 11, we already saw early signs of the pattern repeating, with STRC recovering to $100 while trading volumes rose to their highest level since April 15,” Lunde said.

STRC Became Primary Driver Of Bitcoin Buys

STRC has become the primary driver of Strategy’s Bitcoin acquisitions this year, rising from 4,467 BTC in January to 22,131 BTC in March and nearly 46,872 BTC in April. 

Strategy’s total Bitcoin holdings now stand at 818,869 BTC worth $65.7 billion following Monday’s latest acquisition disclosure.

STRC currently offers an annualized rate of 11.5%, driving investor demand for the product. Strategy recently proposed updating STRC’s dividend payment schedule to twice per month, saying the change could reduce reinvestment lag and enhance liquidity.

Demand May Be Hitting A Ceiling

March and April saw two weeks of substantial Bitcoin accumulation via STRC, but the perpetual preferred stock struggled to trade back to par as quickly this month. 

Strategy added just 1 BTC via the instrument, suggesting demand may be hitting a ceiling.

Bitcoin perpetual futures traders remain defensively positioned, with both 7-day and 30-day average funding rates still negative. 

The 30-day funding rate is nearing a record-long negative streak of 74 consecutive days.

MSTR Down 2.5% Alongside Bitcoin Dip

Strategy pulled back today after tagging $182.48 intraday, giving back ground alongside Bitcoin’s dip below $80,000. The correlation remains almost perfect.

The recovery structure from April’s $105–$110 lows stays intact. Supertrend at $158.35 and SAR at $165.88 both remain bullish. 

The symmetrical triangle breakout from April holds firm, with price retesting the $175–$178 support zone.

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