Bitcoin Strategy Inc. holder perpetual preferred stock, known as STRC or “Stretch,” is showing an increasingly close tie to bitcoin stocks. price movements. This weakens its attractiveness as a relatively stable income provider.
The 90-day correlation coefficient between the two has risen to nearly 0.70, the highest level since the instrument debuted in July 2025, according to data source TradingView. The correlation has been increasing since the beginning of this month, with both STRC and BTC losing ground. While STRC has plunged 23% to $76 this month, the price of BTC has fallen almost 20% to below $60,000, reaching levels last seen in October 2024.
This increasingly tight correlation changes the risk profile of investors seeking stable income from the preferred shares of the world’s largest corporate BTC holder, which holds 847,363 BTC worth $50.4 billion, according to BitcoinTreasuries.net.
STRC was designed as a hybrid product: a floating rate perpetual preferred stock with a par value of $100 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 company can issue additional shares through market offerings and use the proceeds to purchase additional bitcoins.
