K33: Under the Strategy subsidiary, STRC is possibly driving the mid-month Bitcoin rally.

robot
Abstract generation in progress

Crypto Mars News reports that Vetle Lunde, research director at K33, said that Strategy’s perpetual preferred stock STRC may be becoming an important factor driving Bitcoin’s mid-month rise. Lunde noted that STRC dividends are paid on the last day of each month, while the ex-dividend date is set around the 15th of each month. Because Strategy issues additional shares via an ATM mechanism when the STRC price exceeds its $100 face value and uses the raised funds to buy BTC, market demand for STRC tends to rise ahead of the ex-dividend date, which often leads to more BTC buying activity. Data shows that the amount of BTC Strategy has bought through STRC has increased from 4,467 in January this year to about 46,872 in April. Currently, Strategy’s total BTC holdings have reached 818,869 BTC, worth approximately $65.7 billion. However, K33 also pointed out that this month the pace at which STRC has returned to its face value has slowed compared with earlier periods; recently, it added only 1 BTC via this tool, indicating that market demand may be approaching a stage of consolidation and stabilization.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin