Bitcoin has repeatedly shown mid-month price strength this year, a pattern increasingly tied to Strategy's (formerly MicroStrategy) preferred-stock machine. Research firm K33 has identified a connection between the company's STRK funding channel and the digital asset's periodic rallies.
The mechanism allows Michael Saylor's firm to raise capital through preferred stock sales, which it then uses to purchase Bitcoin. This has added a growing layer of cost to Strategy's balance sheet while providing a steady stream of buying pressure in the market.
K33's analysis suggests the timing of Strategy's capital raises aligns closely with Bitcoin's mid-month surges. The company has not publicly confirmed this relationship, but the pattern has persisted across multiple months with increasing consistency.
If the correlation holds, Bitcoin's price may continue to see periodic support from institutional buying flows. However, critics argue this creates an artificial price floor that could lead to sharper corrections if Strategy alters its capital structure.
Counter-argument: Some analysts contend the mid-month strength is coincidental, driven by broader market factors like options expiry cycles rather than any single institution's activity.