The writer of this article holds shares in MicroStrategy (MSTR).
MicroStrategy’s (MSTR) perpetual preferred stock, STRC, has now passed the ex-dividend date of April 15 by a week. With bitcoin now priced at $79,000, this marks the first instance in six months where BTC has increased during the week following the dividend payout.
On the ex-dividend date, bitcoin was valued at approximately $75,000, showcasing BTC’s resiliency even amid the usual post-dividend fluctuations in STRC. In recent months, STRC has functioned as a significant financing tool for the company’s bitcoin acquisitions.
As is common with dividend-yielding assets, STRC typically experiences a decline on its ex-dividend date by roughly the payout amount, as new investors no longer qualify to receive the dividend.
After this decline, the stock usually rebounds steadily, often taking around two weeks to rise back toward its $100 face value. Currently, STRC is trading at $99.47.
This recovery is crucial because once the stock reaches par value, MicroStrategy, recognized as the largest publicly listed entity holding bitcoin, can activate its at-the-market (ATM) program, enabling the issuance of new shares and utilizing the capital to acquire further bitcoin.