STRC-Bitcoin Correlation Hits Record, Undermining Dividend Appeal
Summary
- The 90-day correlation between STRC and Bitcoin rose to a record high of about 0.70, weakening STRC’s appeal as a stable dividend investment.
- As STRC fell about 23% to $76 and Bitcoin dropped about 20% to below $60,000, Strategy reportedly sold some Bitcoin to help fund dividend payments.
- Some investors said discounted STRC could offer both dividend income and capital gains if it returns to par, while others worried a prolonged Bitcoin slump could strain Strategy’s capital structure.
Forecast Trend Report by Period
Strategy’s perpetual preferred stock, STRC, is losing appeal as a stable dividend investment as its price becomes increasingly tied to Bitcoin, CoinDesk reported.
The 90-day correlation coefficient between STRC and Bitcoin has risen to about 0.70, the highest since STRC was launched in July 2025, according to CoinDesk on June 25. STRC has fallen about 23% this month to $76, while Bitcoin has dropped about 20% to below $60,000.
CoinDesk said Strategy can issue new shares and buy additional Bitcoin when STRC trades above $100. With the stock now well below par value, however, additional fundraising and Bitcoin purchases have become more difficult.
Strategy recently sold some Bitcoin to help fund dividend payments, the report added.
Some investors view the discounted STRC as an opportunity to capture both dividend income and capital gains if the stock returns to par. Others worry that a prolonged slump in Bitcoin could place greater strain on Strategy’s capital structure.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.