The author of this article holds shares in MicroStrategy (MSTR). As the largest publicly traded holder of bitcoin, with a current price of $79,553.72, MicroStrategy (MSTR) has announced that its perpetual preferred stock, known as Stretch (STRC), will maintain its dividend rate of 11.5% for May. This marks the third consecutive month at this rate.
The volume-weighted average price of $99.76 in April was close enough to the $100 par value, justifying the decision to keep the rate unchanged. Since its listing in July 2025 with a 9% dividend, STRC has experienced several increases as the company strives to minimize volatility and keep the price near its $100 par value. MicroStrategy positions STRC as a short-term, high-yield savings alternative that provides monthly cash distributions. Currently, STRC is trading at $99.75 and has remained below par since April 15, but based on historical trends, it 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 losing 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, MicroStrategy is considering switching to semi-monthly dividend payments for STRC to reduce volatility even further, moving away from its current monthly distribution structure.