Bitcoin holder Strategy Inc.’s perennial favorite stock, known as STRC or “Stretch,” shows an increasingly close connection to bitcoins the price moves. This weakens its appeal 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 pulled 23% to $76 this month, BTC’s price has fallen nearly 20% to below $60,000, 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 BTC business holder, who owns 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 annual rate is 11.5% and the board adjusts it monthly to encourage trading close to par. When shares trade above $100, the firm can issue additional shares through offerings on the market and use the proceeds to purchase additional bitcoin.
