Correlation Hits 0.70, STRC Moves in Lockstep with Bitcoin
According to CoinDesk, the 90-day correlation coefficient between Strategy's perpetual preferred stock STRC and Bitcoin has risen to nearly 0.70, the highest level since the product's launch in July 2025. A correlation coefficient of 0.70 means that roughly half of STRC's price movements can be explained by Bitcoin's price changes, indicating extremely synchronized price action. This development undercuts STRC's initial appeal as a relatively stable yield vehicle—designed to offer fixed-income-like dividends while still providing indirect Bitcoin exposure with lower volatility than the underlying asset.
Price Plunge: STRC Down 23% to $76, Bitcoin Slides Nearly 20%
This month, STRC has dropped 23% to $76, far below its $100 par value. In the same period, Bitcoin has declined nearly 20%, falling below $60,000. STRC's current annualized dividend yield is 11.5%. Trading below par means that secondary-market buyers receive a higher effective yield than the stated coupon rate, but it also reflects market concerns about Strategy's credit risk or the future trajectory of Bitcoin. More importantly, sustained below-par pricing hampers Strategy's ability to raise fresh capital through new STRC offerings, because any new issuance would have to be priced at a discount, reducing the efficiency of such fundraising.
Impact on Strategy's Bitcoin Acquisition Strategy
STRC trading below par directly constrains Strategy's capacity to issue additional perpetual preferred stock to purchase more Bitcoin. The company has historically used preferred stock and convertible bonds to fund its Bitcoin accumulation. With STRC now depressed, further issuances would come at a steep discount, diluting existing shareholders and making the offering less attractive to investors. This could force Strategy to explore alternative financing methods—such as convertible notes or ATM equity programs—or to slow down its Bitcoin purchases. As of now, the 90-day correlation remains near 0.70, and if Bitcoin continues its weakness, STRC's classification as a 'safe haven' yield product will further erode.