According to research from K33, Strategy's perpetual Stretch preferred stock (STRC) is likely driving strong mid-month performance for bitcoin, creating a supportive short-term demand dynamic for the market. STRC pays dividends on the last day of each month, while share ownership is determined by the ex-dividend date on the 15th of each month, attracting strong investor demand. As reported by K33, this Friday marks another STRC ex-dividend date, with early signs of the pattern repeating on Monday, May 11, as STRC recovered to $100 while trading volumes rose to their highest level since April 15. K33 Head of Research Vetle Lunde confirmed that the pattern could continue this week, with STRC typically trading near par ahead of the ex-dividend date as investors position for payouts, boosting volumes and allowing Strategy to raise more capital for bitcoin purchases.
According to K33 analysis, STRC has increasingly become a primary driver of Strategy's bitcoin acquisitions this year, rising from 4,467 BTC in January to 22,131 BTC in March and nearly 46,872 BTC in April. Strategy's total bitcoin holdings now stand at 818,869 BTC ($65.7 billion) following its latest acquisition disclosure on Monday. The company issues additional STRC shares via its corresponding at-the-market program whenever the stock trades at or above its $100 par value, using proceeds to buy bitcoin. STRC currently offers an annualized rate of 11.5%, helping to drive investor demand for the product. Strategy recently proposed updating STRC's dividend payment schedule to twice per month, which could lead to reduced reinvestment lag and enhanced market efficiency. The scale of STRC-driven acquisitions has grown sharply this year, with the company's total bitcoin holdings representing a significant portion of its overall portfolio.
Bitcoin is showing signs of renewed upside momentum after completing what traders describe as a full "liquidity engineering cycle" on May 12. According to the latest chart analysis, Bitcoin moved through several phases of buying and selling activity during Asian, London, and New York trading sessions before slowing near its lows. The chart suggests Bitcoin went through a major "liquidity sweep," where price movements triggered traders' stop-loss orders before reversing direction. During the Asian session, Bitcoin moved higher and formed a short-term peak, while London markets opened with a sharp drop. In the New York session, BTC briefly fell below the May 11 low, triggering sell orders and stop losses from bearish traders. The decline continued until Bitcoin touched the May 9 low near $79,800 around the London close, after which sellers failed to push prices lower. Bitcoin rebounded above $81,000 and stabilized, with analysts now believing BTC could be preparing for a move toward the May 11 highs around $82,470. At press time, Bitcoin is trading at $80,959, up 0.35% over the last 24 hours and 15% over the past month.
Investors are now watching the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping for its potential market impact, with the summit taking place from May 12–15. Trump is traveling alongside several major corporate leaders, including Tesla and SpaceX CEO Elon Musk, Nvidia CEO Jensen Huang, Apple chairman Tim Cook, BlackRock CEO Larry Fink, Goldman Sachs CEO David Solomon, and Citigroup CEO Jane Fraser. The summit is expected to focus heavily on trade relations, artificial intelligence, Taiwan, energy markets, and the ongoing conflict in Iran. Markets are paying close attention because the outcome could directly affect global liquidity, inflation expectations, oil prices, and investor appetite for risk assets such as Bitcoin. Despite optimism surrounding the Trump-Xi meeting, macroeconomic pressure remains elevated, with U.S. CPI inflation coming in hotter than expected at 3.8% year-over-year, while core inflation rose to 2.8%. Rising energy costs tied to Middle East tensions and disruptions stemming from the Iran conflict have added to concerns that interest rates may remain higher for longer.
