BTC and STRC: Dissecting Price Correlation and Interconnection

This report analyzes the price correlation and interconnection between Bitcoin (BTC) and two distinct assets referred to as "STRC": Strategy/MicroStrategy's preferred stock and the StarChain crypto token. The Strategy/MicroStrategy STRC preferred stock (STRC-P) has shown a significantly high and increasing correlation with BTC, reaching approximately 0.70. This enhanced correlation is driven by its structural backing by BTC reserves and its use as a funding mechanism for BTC acquisitions, leading it to behave more like a BTC proxy with credit risk. In contrast, the StarChain (STRC-T) token lacks any explicit structural linkage to BTC; its price movements are primarily market-driven, akin to other altcoins.