Strategy's yield-generating STRC stock is more correlated with BTC than ever

Bitcoin holder Strategy Inc.’s perpetual preferred stock, known as STRC or “Stretch,” is showing an increasingly tight link to bitcoin’s $BTC$59 390,46 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.

But recent market conditions are stress-testing that model, as STRC trades well below the $100 par. This massive discount limits the firm’s ability to raise additional funds to purchase $BTC. Strategy has recently made small $BTC sales supposedly to cover dividend obligations, marking a dramatic shift from its long-standing “never sell” stance.

And amid all this, the rising correlation with $BTC means STRC no longer provides as much decoupling from the cryptocurrency’s volatility.

Market observers are split. Some see the current discount as an attractive entry for yield-focused capital that could snap back toward par in a recovery, delivering both income and capital appreciation. Others worry that sustained weakness could strain the capital structure, increase reliance on existing reserves, or dampen the positive feedback loop that has supported aggressive Bitcoin accumulation.

For now, the tightening correlation means traders should keep an eye on STRC to see where things are headed next.