Strategy Inc.'s perpetual preferred stock STRC, also called “Stretch,” is now moving in close tandem with Bitcoin, which is trading around $59,390.46. The heightened correlation has diminished the stock’s reputation as a stable income source for investors.
Correlation Surge
TradingView data shows the 90‑day correlation coefficient between STRC and Bitcoin has risen to approximately 0.70, the strongest link since STRC launched in July 2025. The metric has been climbing since early June, coinciding with simultaneous price declines for both assets.
During the same period, STRC fell 23% to about $76, while Bitcoin slipped nearly 20% to just under $60,000, revisiting price levels last observed in October 2024.
Investor Risk Profile
Strategy Inc. holds 847,363 Bitcoin, valued at roughly $50.4 billion according to BitcoinTreasuries.net, making it the largest corporate Bitcoin owner. The tighter correlation now exposes investors in STRC to the volatility typical of the crypto market rather than the steadier returns the preferred stock originally promised.
Investors seeking reliable dividend yields must reassess the risk, as the stock’s price deviation from its $100 par value erodes the cushion that previously insulated shareholders from Bitcoin’s price swings.
Product Structure Under Stress
STRC is a variable‑rate perpetual preferred stock with a $100 par value that distributes monthly cash dividends, currently offering an annualized rate of 11.5%. The board