Strategy’s Yield-Bearing STRC Becomes More Tied to BTC Market Moves

The rising correlation is undercutting STRC’s appeal as a relatively stable income-generating asset.

Strategy Inc.’s perpetual preferred stock, STRC—known as “Stretch”—is increasingly moving in step with bitcoin, weakening its role as a steady yield vehicle.

TradingView data shows the 90-day correlation between STRC and bitcoin has climbed to nearly 0.70, the highest since its July 2025 launch. The link has strengthened in recent weeks as both assets declined, with STRC falling 23% to about $76 this month and bitcoin dropping nearly 20% to below $60,000, levels last seen in October 2024.

This tighter relationship changes the risk profile for investors who once viewed STRC as a more stable income option tied to the largest corporate holder of bitcoin, which owns over 847,000 BTC worth roughly $50 billion.

STRC was designed as a hybrid security—a variable-rate perpetual preferred stock with a $100 par value that pays monthly dividends. Its annualized yield stands near 11.5%, with adjustments made regularly to keep the stock trading close to par. When shares trade above $100, Strategy can issue new equity and use the proceeds to buy more bitcoin.

However, current market conditions are putting that structure under pressure. With STRC trading well below par, the company’s ability to raise fresh capital for bitcoin purchases is constrained. In a notable shift from its long-standing “never sell” approach, Strategy has recently sold small amounts of bitcoin, reportedly to meet dividend obligations.

At the same time, the stronger correlation with bitcoin means STRC offers less protection from crypto market volatility.

Market opinion is split. Some investors see the steep discount as an attractive entry point, expecting a rebound toward par that could deliver both income and capital gains. Others warn that prolonged weakness could strain the company’s capital structure, increase reliance on reserves, and weaken the feedback loop that has supported its aggressive bitcoin accumulation strategy.

For now, the closer tie to bitcoin suggests STRC’s performance will remain heavily influenced by broader crypto market trends.