STRC Tracks Bitcoin Closer Than Ever as Correlation Hits New High

The growing correlation is eroding STRC’s positioning as a relatively stable income-generating asset.

Strategy Inc.’s perpetual preferred stock, STRC—also known as “Stretch”—is becoming increasingly tied to bitcoin’s price movements, reducing its attractiveness as a steady yield instrument.

Data from TradingView shows the 90-day correlation between STRC and bitcoin has climbed to დაახლოებით 0.70, the highest level since the stock launched in July 2025. The relationship has strengthened in recent weeks as both assets have declined. STRC has fallen 23% to around $76 this month, while bitcoin has dropped nearly 20%, slipping below $60,000 to levels not seen since October 2024.

This shift alters the risk profile for investors who viewed STRC as a more stable income option tied to the world’s largest corporate bitcoin holder, which currently owns over 847,000 BTC valued at roughly $50 billion.

Originally structured as a hybrid instrument, STRC is a variable-rate perpetual preferred stock with a $100 par value that pays monthly dividends. Its annualized yield stands at about 11.5%, with the rate adjusted monthly to help keep the stock trading near par. When shares trade above $100, Strategy can issue new equity via at-the-market offerings and use the proceeds to acquire more bitcoin.

However, current market conditions are challenging that framework. With STRC trading significantly below its $100 par value, the company’s ability to raise fresh capital for bitcoin purchases is constrained. In a notable shift from its long-held “never sell” approach, Strategy has recently sold small amounts of bitcoin, reportedly to meet dividend obligations.

At the same time, the rising correlation with bitcoin means STRC is offering less insulation from the cryptocurrency’s volatility.

Opinions among market participants remain divided. Some view the steep discount as an opportunity for yield-focused investors, anticipating a rebound toward par that could deliver both income and price gains. Others caution that prolonged weakness could pressure the company’s capital structure, increase reliance on existing reserves, and weaken the feedback loop that has supported its aggressive bitcoin accumulation strategy.

For now, the strengthening link to bitcoin suggests investors should closely monitor STRC’s trajectory.