STRC-BTC correlation hits all-time high

The correlation between MicroStrategy's (MSTR) perpetual preferred stock, STRC, and Bitcoin (BTC) has reached an all-time high, diminishing its appeal as a stable dividend product, CoinDesk reported. The 90-day correlation coefficient between STRC and BTC is now around 0.70, its highest level since the stock's launch in July 2025. This month, STRC has fallen approximately 23% to $76, while BTC has dropped about 20% to below $60,000. CoinDesk explained that while MicroStrategy can issue new shares to purchase more BTC when STRC trades above $100, its current price, well below par value, has made it difficult to raise additional funds. This recently led the company to sell a small amount of BTC to finance its dividend payments. Some investors view the discounted STRC as an opportunity for both dividends and capital gains should it recover its par value. However, others are concerned that a prolonged market downturn could put increasing pressure on MicroStrategy's capital structure.