Strategy Inc.’s perpetual preferred stock STRC is now tracking bitcoin more closely than at any point since its launch. TradingView data shows the 90-day correlation coefficient has climbed to nearly 0.70, the highest reading since STRC debuted in July 2025. That shift cuts into the product’s appeal as a relatively steady income vehicle.
The link has tightened as both assets fell this month. STRC has dropped 23% to $76, while bitcoin has slid nearly 20% to below $60,000, revisiting levels last seen in October 2024. As correlation rises, investors holding STRC get less insulation from bitcoin’s volatility. That is a material change for a security that had been viewed as a way to collect yield without taking the full price swings of BTC itself.
Hybrid structure faces a harsher market test
STRC was built as a hybrid instrument: a variable-rate perpetual preferred stock with a $100 par value and monthly cash dividends. Its current annualized dividend rate stands at 11.5%. The board adjusts that rate each month in an effort to keep the shares trading close to par.
When the stock trades above $100, Strategy can sell additional shares through at-the-market offerings and direct the proceeds into more bitcoin purchases. That design tied income generation to the company’s broader bitcoin accumulation strategy. With STRC now trading far below par, the structure is under pressure and the market is assigning a different risk profile to the stock.
Discount to par narrows bitcoin funding flexibility
A deep discount below par makes it harder for Strategy to raise fresh capital through STRC and use that cash to buy more BTC. That matters because the company remains the largest corporate bitcoin holder. Data from BitcoinTreasuries.net puts its holdings at 847,363 BTC, valued in the article at about $50.4 billion.
The report also notes that Strategy recently made small bitcoin sales, reportedly to meet dividend obligations. That marks a notable break from its long-running “never sell” posture. If STRC stays weak, pressure could build on the company’s capital structure, and the feedback loop that helped support aggressive bitcoin accumulation may lose strength.
Investors are split on what the discount means
Market watchers are divided. One camp sees the current discount as a potential entry point for yield-focused buyers, especially if the shares recover toward par and offer both income and price upside. Another camp is more cautious and sees prolonged weakness as a sign that the stock may depend more heavily on existing reserves while offering less separation from bitcoin’s swings.
For now, the message from the market is straightforward: STRC is behaving more like a bitcoin-linked security than a stand-alone income product, and traders are watching that relationship much more closely.