The strengthening correlation is weakening STRC’s role as a relatively stable income-generating asset.
Strategy Inc.’s perpetual preferred stock, STRC—also known as “Stretch”—is increasingly moving in tandem with bitcoin’s price, reducing its appeal as a steady yield vehicle.
According to TradingView data, the 90-day correlation between STRC and bitcoin has risen to nearly 0.70, its highest level since the instrument launched in July 2025. The relationship has intensified in recent weeks as both assets declined. STRC has dropped 23% to around $76 this month, while bitcoin has fallen nearly 20%, slipping below $60,000 to levels last seen in October 2024.
This growing linkage reshapes the risk profile for investors who viewed STRC as a more stable income option tied to the largest corporate holder of bitcoin, which owns over 847,000 BTC valued at roughly $50 billion.
STRC was designed as a hybrid instrument—a variable-rate perpetual preferred stock with a $100 par value that pays monthly dividends. Its annualized yield is about 11.5%, with the rate adjusted regularly to keep the stock trading near par. When shares trade above $100, Strategy can issue additional stock and deploy the proceeds to buy more bitcoin.
However, current market conditions are putting pressure on that structure. With STRC trading well below par, the company’s ability to raise new capital for bitcoin purchases is limited. In a notable shift from its long-standing “never sell” stance, Strategy has recently sold small amounts of bitcoin, reportedly to meet dividend obligations.
At the same time, the rising correlation with bitcoin means STRC offers less protection from the cryptocurrency’s volatility.
Market opinion remains divided. Some investors see the deep discount as an attractive entry point, expecting a rebound toward par that could deliver both yield and capital gains. Others caution that prolonged weakness could strain the firm’s capital structure, increase reliance on reserves, and weaken the feedback loop that has supported its aggressive bitcoin accumulation strategy.
For now, the tightening link to bitcoin suggests investors should watch STRC closely for signs of where it may head next.
