Stretch (STRC) is a short-duration, high-yield preferred equity instrument designed to provide Bitcoin-backed credit exposure with engineered price stability around par ($99–$101). Dividends are reset monthly and paid cumulatively, with the objective of stabilizing secondary-market pricing while delivering attractive income.
The instrument is designed to behave as an income-oriented credit exposure, with price volatility playing a secondary role to cash-flow generation.
Based on daily price data, STRC has exhibited moderate market volatility, with a notable improvement in stability following December 2025.
To evaluate the economic experience of a long-term STRC holder, a NAV simulation was constructed assuming a $100 million investment on August 1, 2025, with monthly dividends reinvested in full at market prices. Dividends are modeled as cash payments equal to the stated dividend rate as a percentage of par ($100), with NAV marked daily using closing prices.
The simulated NAV path demonstrates that returns are primarily driven by dividend accrual, with price volatility introducing short-term fluctuations but limited persistence of drawdowns. NAV exhibits discrete step-ups on dividend payment dates and stable growth over medium-term horizons. This is consistent with STRC’s short-duration, income-oriented credit design.
| Metric | 1D Return | 7D Return | 1M Return | 3M Return |
|---|---|---|---|---|
| % Negative periods | 0.374046 | 0.416000 | 0.216216 | 0.014493 |
| Minimum return | -0.044086 | -0.072100 | -0.054342 | -0.034707 |
| Median return | 0.000606 | 0.002687 | 0.017697 | 0.032492 |
| Mean return | 0.000941 | 0.004009 | 0.014274 | 0.036652 |
| Maximum return | 0.054340 | 0.063534 | 0.075931 | 0.067832 |
Across time horizons, median and mean returns remain positive, indicating that dividends increasingly overwhelms price noise over time. Even at the one-month horizon, the worst observed rolling losses remains moderate compared to dividend income.
An analysis of STRC’s historical price behavior was conducted to evaluate the longest time required to re-peg to par ($99+) following a de-peg, defined as any period where STRC’s daily close traded below $99, with re-peg marked as the first subsequent close at or above $99.
Two starting points were analyzed to reflect different interpretations of STRC’s lifecycle: