Bitcoin’s upward move is being reinforced by a combination of short-covering pressure and consistent demand from U.S.-based investors.

Strategy Inc.’s perpetual preferred stock, STRC, is now more than a week past its April 15 ex-dividend date. Since that event, Bitcoin BTC has climbed from roughly $75,000 to near $79,000—marking the first time in six months that the asset has gained in the week following the dividend payout.

The price strength stands out given STRC’s usual post-dividend adjustment. The instrument has increasingly been used as a high-intensity funding tool for Strategy’s bitcoin acquisition strategy in recent months.

As with most dividend-paying securities, STRC dropped on its ex-dividend date by approximately the value of the payout, reflecting that new buyers no longer qualify for the dividend. The shares typically recover gradually, often taking up to two weeks to approach their $100 par value. They are currently trading around $99.47.

This recovery is a key trigger. Once STRC returns to par, Strategy—the largest publicly traded holder of bitcoin—can reactivate its at-the-market (ATM) issuance program, raising funds to expand its BTC holdings.

Strategy’s common shares rose more than 9% on Wednesday to about $178, suggesting the company may already be tapping its ATM program to finance additional bitcoin purchases.

The firm recently disclosed one of its largest acquisitions on record, buying 34,164 BTC, even as prices initially remained capped near the $75,000 level.

At the same time, derivatives positioning is amplifying the move. Funding rates in perpetual futures markets remain negative, indicating that short sellers are paying long positions to stay in their trades—a sign that bearish sentiment still lingers.

As bitcoin continues to rise under these conditions, short positions are increasingly forced to close, triggering a short squeeze that adds further momentum to the rally.