The author of this article has a stake in MicroStrategy (MSTR). As the largest publicly traded holder of bitcoin, Strategy (MSTR) has decided to keep the dividend rate for its perpetual preferred stock, Stretch (STRC), at 11.5% for May.
This marks the third month in a row that the dividend has remained at this level. The volume-weighted average price (VWAP) of $99.76 in April was close enough to the par value of $100 to justify maintaining the current rate. Since its listing in July 2025 with a 9% dividend, STRC has experienced several increases as the company seeks to minimize volatility and keep the price stable near its par value. Strategy positions STRC as a short-term, high-yield savings alternative that distributes cash monthly.
Currently, STRC is trading at $99.75 and has been below par since April 15. Historically, the price is expected to return to $100 next week. Meanwhile, MSTR's common stock has shown signs of recovery, ending April at $165, a 33% increase, and its first positive month in nine.
Prior to this, the stock had fallen by 75% over eight consecutive months from August 2025 to March 2026, according to data from TradingView. Bitcoin also saw a 12% increase in April, its best monthly performance since April 2025. Furthermore, Strategy is considering switching to semi-monthly dividend payments for STRC to reduce volatility even further.