The author of this article holds shares in MicroStrategy (MSTR). As the largest publicly traded bitcoin holder, MicroStrategy (MSTR) has decided to keep the dividend rate for its perpetual preferred stock, STRC, at 11.5% for May. This marks the third consecutive month that the dividend has remained at this level.
The volume-weighted average price (VWAP) for April was $99.76, which is close enough to the par value of $100 to justify maintaining the current dividend rate. Since its listing in July 2025 with a 9% dividend, STRC has experienced a series of increases as the company seeks to minimize volatility and keep the stock price near its par value. MicroStrategy positions STRC as a short-term, high-yield savings option, offering monthly cash distributions.
Currently, STRC is trading at $99.75 and has been below par since April 15. However, based on historical trends, it is anticipated that the stock will return to its par value of $100 next week. Meanwhile, MSTR's common stock has shown signs of recovery, closing April at $165, which represents 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. Additionally, bitcoin rose by 12% in April, marking its best monthly performance since April 2025. Furthermore, MicroStrategy is considering switching to semi-monthly dividend payments for STRC, moving away from its current monthly distribution structure in an effort to reduce volatility even further.