Bitcoin holder Strategy Inc.’s perpetual preferred stock, known as STRC or “Stretch,” is showing an increasingly tight link to bitcoin’s price moves. This weakens its appeal as a relatively steady income provider.
The 90-day correlation coefficient between the two has climbed to nearly 0.70, the highest level since the instrument debuted in July 2025, according to data source TradingView. The correlation has been rising since early this month, with both STRC and BTC losing ground. While STRC has tanked 23% to $76 this month, BTC’s price has slipped nearly 20% to under $60,000, hitting levels last seen in October 2024.
This tightening correlation changes the risk profile for investors seeking steady income from the preferred stock of the world’s largest corporate BTC holder, which owns 847,363 BTC worth $50.4 billion, according to BitcoinTreasuries.net.
STRC was designed as a hybrid product: a variable-rate perpetual preferred stock with a $100 par value that pays monthly cash dividends. The current annualized rate is 11.5%, and the board adjusts it monthly to encourage trading near par. When shares trade above $100, the firm can issue additional shares through at-the-market offerings and use the proceeds to purchase additional bitcoin.