K33 says Strategy’s STRC preferred stock may be fueling recurring mid-month Bitcoin buying spikes.
Bitcoin News
Research firm K33 says Strategy's perpetual preferred stock, STRC, is the likely driver behind the stronger mid-month Bitcoin (BTC) performance observed in March and April 2026.
Head of Research Vetle Lunde outlined the mechanism in a report published May 13. STRC distributes dividends on the last day of each month, but eligibility for those payouts is determined by the ex-dividend date on the 15th. That structure creates a predictable window of heightened investor demand in the days leading up to the cut-off each month.
Strategy issues new STRC shares through its at-the-market program whenever the stock trades at or above its $100 par value. The company then uses those proceeds to buy BTC. As investors accumulate STRC ahead of the ex-dividend date, the stock tends to recover toward par, lifting trading volumes and giving Strategy more room to raise capital for Bitcoin purchases. STRC carries an annualized yield of 11.5%, which Lunde cited as a primary reason for sustained investor demand.
On May 11, STRC recovered to $100 while trading volumes climbed to their highest level since April 15. Lunde described those signals as early evidence that the mid-month pattern is repeating ahead of the May 15 ex-dividend date. "By next Monday we are prepared for yet another massive BTC purchase announcement from Strategy," he wrote in the report.
STRC Drives Record BTC Accumulation
STRC has grown into the dominant channel for Strategy's BTC accumulation this year. Purchases via the instrument rose from 4,467 BTC in January to 22,131 BTC in March and 46,872 BTC in April, according to K33 data. Strategy's total holdings now stand at 818,869 BTC, valued at approximately $65.7 billion, following its latest acquisition disclosure on May 11.
Despite the positive near-term signals, Lunde flagged signs that demand may be cooling. Strategy added just one BTC via STRC so far in May, and the stock has been slower to recover to par than in prior cycles. Over the longer term, growing STRC issuance raises Strategy's dividend obligations, which Lunde described as an increasing burden on the company. Strategy has proposed shifting STRC dividend payments from monthly to twice per month, saying the change could reduce reinvestment lag and improve liquidity and price stability.
BTC perpetual futures funding rates remain negative on both seven-day and 30-day averages, per K33. The 30-day funding rate is approaching a record streak of 74 consecutive negative days. Lunde said a brief normalization in recent days appeared driven by low trading activity rather than renewed bullish conviction, as open interest and volumes both remained subdued.
BTC's 30-day correlation to the Nasdaq is near record highs. Despite this, BTC has slightly underperformed against the latest equity surge, which Lunde said challenges the common view of Bitcoin as a high-beta version of equities. K33 said Bitcoin fundamentals remain strong, but the recent rally has closely tracked equities rather than diverging on its own momentum.
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