STRCโs correlation with BTC hits a new highโwhere did the hedge effect go?
Strategyโs sustainability-first preferred stock, STRC, was originally designed to give yield-focused investors an option thatโs steadier than Bitcoinโyet it now has a 90-day correlation with BTC of 0.70, the highest since it launched in July 2025 ๐๐
Simply put: you buy STRC to diversify risk, but now itโs behaving just as wild as Bitcoin.
This month at a glance:
โข STRC fell about 23%, hitting a low of $74.13 (par value $100)
โข BTC broke below $60,000, down nearly 20%
โข MSTR plunged 46% in a month
โข Strategy first sold BTC for dividends after 2022 (32 coins)
STRC originally attracted investors with lower volatility than BTC, MSTR, gold, and the S&P 500โbut that story has basically unraveled. When the correlation reaches 0.70, what youโre holding isnโt a hedge anymore. Itโs BTC with leverage ๐คทโโ๏ธ
That said, market opinions are still split: some see the discount as an opportunityโif BTC rebounds, you can earn dividends plus capital appreciation; others worry that if BTC canโt hold up, Strategy may have to sell more BTC or dilute shareholders.
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