An analysis has emerged that Strategy's perpetual preferred stock, STRC, is creating Bitcoin (BTC) demand mid-month and leading price movements. According to The Block, Vetle Lunde, Head of Research at K33, stated, "Although STRC pays dividends at the end of each month, the record date for shareholders is the 15th of each month. Consequently, when investors purchase STRC ahead of the dividend, the stock price recovers to around its $100 par value, and Strategy issues additional STRC through an at-the-market (ATM) program to fund BTC purchases. On the 11th, STRC recovered to $100, and its trading volume reached its highest level since April 15th, indicating signs of this pattern re-emerging." However, Lunde added, "This month, STRC has been slow to recover its par value, and additional purchases through this method have only amounted to 1 BTC, suggesting a potential stagnation in demand."
