The growing similarity in movement undermines STRC's status as a reliable income source.
By Omkar Godbole|Edited by Cheyenne Ligon Jun 25, 2026, 5:48 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- Strategy Inc.'s perpetual preferred stock, STRC, has recorded a 90-day correlation with bitcoin nearing 0.70, the highest since its introduction in July 2025.
- This month, STRC has fallen 23% to $76, while bitcoin has dropped nearly 20% to below $60,000, challenging STRC's status as a more stable income option linked to the company’s substantial bitcoin assets.
Strategy Inc.'s perpetual preferred stock, referred to as STRC or "Stretch," is increasingly mirroring the price fluctuations of bitcoin, currently valued at BTC$59,514.28. This trend diminishes its attractiveness as a stable income source.
According to TradingView, the 90-day correlation coefficient between STRC and BTC has risen to nearly 0.70, the highest recorded since STRC's launch in July 2025. This correlation has been on the rise since early this month, during which both STRC and BTC have experienced declines. STRC has decreased by 23% to $76, while BTC's value has dropped nearly 20%, falling below $60,000 for the first time since October 2024.
This strengthening correlation alters the risk dynamics for investors seeking consistent income from the preferred stock of the largest corporate BTC holder, which owns 847,363 BTC valued at $50.4 billion, as noted by BitcoinTreasuries.net.
STRC was created as a hybrid investment: a variable-rate perpetual preferred stock with a $100 par value that distributes monthly cash dividends. It currently offers an annualized yield of 11.5%, which the board adjusts monthly to promote trading close to par value. If shares are priced above $100, the company can issue additional shares through at-the-market offerings, using the funds to acquire more bitcoin.
However, the current market environment is presenting challenges to this model, as STRC is trading significantly below its $100 par value. This substantial discount restricts the firm's capacity to raise further funds for bitcoin purchases. Recently, Strategy has made minor BTC sales reportedly to meet dividend obligations, a significant departure from its previous stance of never selling.
Moreover, the increased correlation with BTC indicates that STRC is no longer offering as much insulation from bitcoin's volatility.
Market analysts are divided on this development. Some view the current discount as a potential opportunity for yield-seeking investors, suggesting that it could rebound towards par during a market recovery, providing both income and capital gains. Others express concerns that prolonged weakness might strain the capital structure, heighten dependence on current reserves, or hinder the favorable feedback loop that has facilitated aggressive Bitcoin accumulation.
At this moment, the tightening correlation suggests that traders should monitor STRC closely for future movements.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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