Cryptocurrency research firm K33 Research has suggested that the STRC product issued by Strategy could play a significant role in Bitcoin’s mid-month price surge.
According to the company’s report, Bitcoin saw strong gains in the middle weeks of March and April, and Vetle Lunde, head of research at K33, believes that this trend could continue this week.
The report states that the STRC dividend mechanism has had an impact on the market. STRC dividends are paid on the last day of each month and investors must purchase shares before the dividend payment date, the 15th of the month, to be eligible. This, it was noted, brought the price of STRC closer to its par value of $100, increased trading volume and allowed the strategy to raise more funds by issuing new STRCs to the market. These funds were then used to purchase Bitcoin.
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Lunde said Friday, May 15, would be the new dividend exit date and that the first signals of a similar move were seen on Monday. It was reported that the price of STRC increased again to the $100 level and the trading volume reached its highest level since April 15.
According to K33, STRC has become one of the most important strategy tools for Bitcoin purchases this year. Bitcoin purchases made through STRC increased from 4,467 $BTC in January at 22,131 $BTC in March, then to 46,872 $BTC in April. Company’s total Bitcoin holdings reached 818,869 $BTCwhose value is estimated at approximately $65.7 billion. Additionally, the fact that STRC offers an annualized return of 11.5% has supported investor demand.
*This does not constitute investment advice.