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STRC Loses Its Independence as Its Correlation With Bitcoin Rises

Strategy Inc.'s preferred shares are moving more and more in step with Bitcoin, which makes the monthly dividend less insulated from crypto volatility. That also limits the room to raise new capital through STRC for more BTC.

By Luc Vesters
• 2 min read
STRC Loses Its Independence as Its Correlation With Bitcoin Rises

Key Takeaways

  • The 90-day correlation between STRC and Bitcoin rose to nearly 0.70, the highest level since its launch in July 2025.
  • STRC fell about 23% this month to $76, while Bitcoin lost nearly 20% and dropped below $60,000.
  • Because of the lower price, STRC is trading well below its $100 face value, which limits capital raising for additional Bitcoin purchases.

Strategy Inc.'s preferred shares, known as STRC or "Stretch," are showing a stronger and stronger correlation with Bitcoin's price moves. That trend is weakening STRC's appeal as a relatively stable income source for investors.

Strong Correlation Between STRC and Bitcoin

The 90-day correlation coefficient between STRC and Bitcoin has climbed to nearly 0.70, the highest level since STRC launched in July 2025. The move higher started in early June and came alongside price drops in both STRC and Bitcoin. STRC lost about 23% this month and fell to $76 (€67), while Bitcoin lost nearly 20% and dropped below $60,000 (€52,900), levels not seen since October 2024. This tighter link means STRC is less separate from Bitcoin's volatility, which changes the risk profile for investors looking for steady income. That lines up with the broader weakness in the digital asset treasury market, where demand has clearly cooled in recent weeks for digital asset treasuries.

Impact on the Business Model and Market Conditions

STRC is designed as a hybrid investment product: a preferred share with a face value of $100 (€88) that pays a monthly dividend. The annual dividend yield is currently 11.5%, and the board adjusts the price each month to keep trading close to face value. If STRC trades above $100 (€88), Strategy Inc. can issue new shares to buy more Bitcoin. However, because of the recent drop in price, STRC is trading well below face value, which limits the company's ability to raise extra capital for Bitcoin purchases. On top of that, Strategy Inc. recently sold small amounts of Bitcoin to meet dividend obligations, a notable shift from its earlier policy of never selling.

What Does This Mean for Investors in Europe?

For European investors, the growing correlation between STRC and Bitcoin could matter because it means STRC offers less protection from Bitcoin's volatility. That could affect how willing investors are to include STRC in a diversified portfolio focused on steady income. At the same time, STRC's current discount could look like an attractive entry point for some investors, if the market recovers and the price moves back toward face value. It is still important to keep a close eye on developments around STRC and Bitcoin, since the situation could affect Strategy Inc.'s capital structure and buying strategy.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.