CoinDesk
Strategy Inc.'s perpetual preferred stock, STRC, is now trading in near-lockstep with bitcoin. The 90-day correlation between the two has climbed to roughly 0.70, the highest level since the instrument debuted in July 2025, according to TradingView data. STRC has shed about 23% this month to $76 while BTC has slipped nearly 20% back under $60,000, a level last seen in October 2024.
STRC was structured as a variable-rate perpetual preferred with a $100 par value, paying monthly cash dividends at a current annualized 11.5%. The board adjusts the rate each month to keep shares trading near par, and when the stock prints above $100 Strategy issues new shares through at-the-market offerings to buy more BTC. With STRC now well below par, that issuance channel is effectively closed, and Strategy has begun small BTC sales it says are earmarked for dividend obligations, a sharp break from its long-standing never-sell stance. The company still holds 847,363 BTC, worth about $50.4 billion at current prices, per BitcoinTreasuries.net.
Why it matters
STRC was marketed as a hybrid product: equity-like BTC exposure with a steadier income wrapper on top. A 0.70 correlation with bitcoin undercuts that pitch. For yield-focused buyers, the instrument increasingly behaves like a leveraged BTC proxy with extra steps, and the monthly dividend reset mechanism is the only thing keeping the trade from looking like a straight short-vol bet on BTC itself.
Market impact
The bigger signal is in the capital structure. STRC trading 24% below par shuts off the at-the-market funding loop that has powered Strategy's BTC accumulation, forcing the firm to either drain its BTC stack to cover dividends, lift the dividend rate high enough to drag STRC back toward par, or wait for a BTC recovery to do the work. Market observers are split between viewing the current discount as a yield-entry opportunity and warning that sustained weakness could strain the structure and slow the BTC buying cadence that has defined the equity story since 2020.
Frequently asked questions
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What is Strategy's STRC preferred stock?
STRC is Strategy Inc.'s variable-rate perpetual preferred stock, launched in July 2025 with a $100 par value and paying monthly cash dividends. The current annualized dividend rate is 11.5%, and the board adjusts it each month to keep trading near par.
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How closely is STRC now correlated with bitcoin?
The 90-day correlation between STRC and bitcoin has climbed to roughly 0.70, the highest level since the instrument's debut in July 2025, according to TradingView data cited in the report.
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Why is STRC trading below its $100 par value?
STRC slipped to about $76 as bitcoin fell nearly 20% back under $60,000 this month. With shares well below par, Strategy's at-the-market offering channel, which relies on printing above $100 to fund new BTC buys, is effectively closed.
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Has Strategy started selling bitcoin to cover STRC dividends?
Yes. With STRC trading below par and the issuance channel shut, Strategy has begun small BTC sales it says are earmarked for dividend obligations. The move breaks from the firm's long-standing never-sell stance on its 847,363 BTC holdings.
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What happens to STRC if bitcoin keeps falling?
Sustained BTC weakness would keep STRC pinned below par, force the board to choose between higher dividend resets, additional BTC sales to fund payouts, or simply waiting for a BTC recovery. Either path weakens the positive feedback loop that has supported Strategy's accumulation.
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