The author of this article holds shares in MicroStrategy (MSTR). MicroStrategy, the publicly traded company with the largest holdings of bitcoin, has announced that it will maintain the dividend rate for its perpetual preferred stock, known as Stretch (STRC), at 11.5% for May. This marks the third consecutive month that the dividend rate has remained unchanged. The volume-weighted average price (VWAP) of STRC in April was $99.76, which is close enough to its par value of $100 to justify maintaining the current dividend rate.
Since its listing in July 2025 with an initial dividend rate of 9%, STRC has experienced several increases as the company strives to minimize price volatility and keep the stock price near its par value. MicroStrategy positions STRC as a short-term, high-yield savings alternative that distributes cash monthly. 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, which represents 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 experienced a 12% increase in April, its best monthly performance since April 2025. Furthermore, MicroStrategy is considering shifting to semi-monthly dividend payments for STRC to reduce volatility further, moving away from its current monthly distribution structure.