Bitcoin Holder Strategy Inc.’s perpetual preferred shares, known as STRC or “Stretch,” show an increasingly close connection to that of Bitcoin. price movements. This weakens its appeal as a relatively stable source of income.
The 90-day correlation coefficient between the two has climbed to almost 0.70, the highest level since the instrument’s launch in July 2025, according to data source TradingView. The correlation has increased since the start of the month, with STRC and BTC losing ground. While STRC fell 23% to $76 this month, the price of BTC fell almost 20% to below $60,000, reaching levels last seen in October 2024.
This tightening correlation changes the risk profile of investors seeking stable income from preferred shares of the world’s largest BTC holding company, which owns 847,363 BTC worth $50.4 billion, according to BitcoinTreasuries.net.
STRC was designed as a hybrid product: a floating rate perpetual preferred stock with a par value of $100 that pays monthly cash dividends. The current annualized rate is 11.5% and the board adjusts this monthly to encourage transactions near par. When shares trade above $100, the company can issue additional shares through market offerings and use the proceeds to purchase additional bitcoins.
