Bitcoin's predictable mid-month strength this year has a name: STRC. Strategy's perpetual preferred stock, trading at or above its $100 par value, triggers a funding loop that lets the firm issue new shares and plow proceeds into Bitcoin. This week, with STRC back at par, the company scooped up more than 5,000 Bitcoin ahead of the next ex-dividend cutoff on May 15.
The STRC loop
STRC's design is simple: when the stock trades at or above $100, Strategy can tap its at-the-market program, raise cash, and buy Bitcoin. The dividend eligibility deadline on the 15th of each month creates a recurring demand window. Last month alone, Strategy bought about 46,872 Bitcoin via STRC — up from 22,131 in March and 4,467 in January, according to K33 Research.
Delphi Digital estimates that roughly 97 cents of every dollar raised through STRC ends up in Bitcoin. The flip side: each $1 billion of STRC issuance carries about $115 million of annual dividend obligations. With STRC's annualized yield now at 11.5%, this isn't the cheap financing strategy used earlier.
Dividend mechanics
The current monthly schedule means investors who buy before the 15th qualify for the dividend, creating a natural bid into that date. Data from STRC.live showed the funding loop active this week, with STRC returning to par and enabling the latest purchase. Strategy's common stock premium has shrunk to about 1.24 times enterprise-value-based net asset value, making STRC the more efficient capital-raising tool for now.
The company still carries roughly $8.2 billion in principal from earlier convertible debt deals, with repayments starting September 2027. That timeline has made the perpetual preferred route increasingly attractive.
Proposed changes
Strategy has proposed moving STRC's dividend schedule from monthly to twice-monthly distributions. The goal: reduce reinvestment delays and create more frequent capital-raising opportunities. If approved, it could smooth out the mid-month buying spike — or amplify it, depending on how markets adjust.
The timing matters. Strategy's Bitcoin purchases via STRC have already accelerated sharply this year. Twice-monthly dividends would let the company tap the market more often, potentially increasing the pace of accumulation.
Friday's ex-dividend deadline will test whether STRC holds above par after the cutoff. If it does, the loop stays open. If not, Strategy will have to wait for the next cycle — or lean on other financing. Either way, the pattern is now on traders' radar.
