STRC’s correlation with Bitcoin hits an all-time high, weakening its stable income attribute.

Strategy’s perpetual preferred stock STRC (Stretch) has seen its 90-day correlation coefficient with Bitcoin rise to nearly 0.70, a record high since its launch in July 2025, indicating its price movement is increasingly closely tracking Bitcoin’s fluctuations and eroding its appeal as a relatively stable income-generating product. Data shows STRC has dropped 23% this month to $76, while Bitcoin fell nearly 20% over the same period, breaking below $60,000. STRC has a par value of $100 and adopts a floating dividend mechanism, with its current annualized dividend yield standing at 11.5%. The company originally aimed to maintain its share price close to par to continuously raise funds through additional issuances to buy more Bitcoin. However, since STRC is currently trading at a significant discount to par, Strategy’s ability to raise funds through new issuances for Bitcoin purchases is limited. Meanwhile, the company has recently sold a small portion of its Bitcoin to pay dividends, a stark contrast to its long-held "never sell Bitcoin" strategy. Market views are divided: some investors believe STRC’s current discount offers an investment opportunity combining high yields and potential capital appreciation; others worry that if the downturn persists, it may weaken Strategy’s financing capacity and impact its model of continuously increasing Bitcoin holdings via capital markets.