Strategy’s perpetual preferred stock STRC has seen its 90-day correlation with bitcoin rise to nearly 0.70, its highest level since debuting in July 2025. The tighter link is challenging the stock’s role as a steadier income vehicle tied to Strategy’s bitcoin-heavy balance sheet.
Strategy’s perpetual preferred stock STRC has seen its 90-day correlation with bitcoin rise to nearly 0.70, its highest level since debuting in July 2025. The tighter link is challenging the stock’s role as a steadier income vehicle tied to Strategy’s bitcoin-heavy balance sheet.
The shift matters because STRC was designed to offer monthly cash dividends while trading near its $100 par value, giving investors exposure to Strategy’s bitcoin-linked capital structure with a potentially steadier income profile. A rising correlation with BTC weakens that distinction, especially during a bitcoin drawdown.
Strategy Inc.’s perpetual preferred stock, STRC, is moving more closely with bitcoin than at any point since its July 2025 launch. According to CoinDesk, TradingView data shows STRC’s 90-day correlation with BTC has climbed to nearly 0.70, as both assets have fallen sharply this month.
The shift matters because STRC was designed to offer monthly cash dividends while trading near its $100 par value, giving investors exposure to Strategy’s bitcoin-linked capital structure with a potentially steadier income profile. A rising correlation with BTC weakens that distinction, especially during a bitcoin drawdown.
STRC, also known as “Stretch,” is a variable-rate perpetual preferred stock with a $100 par value. CoinDesk reported that it currently carries an 11.5% annualized dividend rate, with Strategy’s board adjusting the rate monthly to help keep the shares near par.
That model is under pressure. STRC has dropped 23% this month to $76, while bitcoin has fallen nearly 20% to below $60,000, according to the source. Strategy, the world’s largest corporate holder of bitcoin, owns 847,363 BTC valued at $50.4 billion, CoinDesk reported citing BitcoinTreasuries.net.
The discount also affects Strategy’s ability to use STRC as a funding tool. When STRC trades above par, the company can issue more shares through at-the-market offerings and use proceeds to buy bitcoin. With the stock trading well below $100, that mechanism becomes less effective, while the closer link to BTC leaves investors with less separation from crypto market volatility.
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