The perpetual preferred yield holds at 11.5% for April as the 30-day volume weighted average price stabilizes near $100.
Strategy (formerly MicroStrategy) has maintained the annualized dividend rate on its high-yield perpetual preferred stock, ticker STRC (known as "Stretch"), at 11.50% for the month of April 2026. This marks the continuation of a steady payout following seven consecutive monthly increases since the instrument's launch in mid-2025.
The variable-rate structure is designed to keep STRC trading close to its $100 par (stated) value. According to the company's investor page, the 30-day volume-weighted average price (VWAP) has stabilized near this level, resulting in an effective yield that also sits at approximately 11.5%. Dividends are paid monthly in cash, with the next record date set for April 15 and payout on April 30.
### A Unique Funding Tool for Bitcoin Accumulation
STRC functions as a short-duration, high-yield credit-like instrument within Strategy's capital stack. Executive Chairman Michael Saylor has positioned it as a key vehicle to raise non-dilutive (or less dilutive) capital for the company's aggressive Bitcoin treasury strategy without relying solely on common stock issuance.
The adjustable dividend mechanism incentivizes trading around par: if the price drifts too low, the rate can be increased to attract buyers; if it trades at a premium, the rate may be adjusted downward. This has helped STRC exhibit remarkably low volatility compared to Strategy's common shares (MSTR) or Bitcoin itself—recent data highlighted 30-day volatility as low as ~2% while delivering the 11.5% yield.
As of early April 2026, STRC's notional amount outstanding stands at over $5 billion, with strong 30-day average daily trading volume exceeding $260 million. The shares were recently quoted around $100.02.
### Context and Performance
This steady April rate follows a 25-basis-point increase to 11.5% announced for March 2026—the seventh straight hike at that time. The adjustment came amid volatility in Bitcoin prices and pressure on MSTR shares, underscoring STRC's role as a more stable income option in Strategy's ecosystem.
Investors have noted that distributions often carry significant return-of-capital (ROC) treatment for tax purposes, as the company currently reports no accumulated earnings and profits. While this can defer taxes for many investors, it also highlights that payouts are supported by Strategy's substantial Bitcoin holdings and cash reserves rather than traditional operating earnings.
Market observers describe STRC as part of Strategy's "Bitcoin flywheel"—issuing yield-bearing securities to fund more Bitcoin purchases, which in turn support the overall treasury value backing the preferred obligations. However, analysts caution that the perpetual nature, variable rate, and dependence on market appetite for new issuance introduce risks, especially in prolonged crypto downturns.
### Michael Saylor on STRC
In a recent appearance-style segment (as shown in CoinDesk coverage), Saylor emphasized the instrument's appeal as a high-yield, relatively low-volatility alternative to traditional fixed-income products or bank deposits.
Strategy continues to expand its Bitcoin treasury ambitions, with plans involving multiple layers of equity and preferred issuance. STRC remains a cornerstone of the income-focused portion of that strategy.
Disclosure: This article is for informational purposes only and does not constitute investment advice. Perpetual preferred securities like STRC carry risks including dividend variability, lack of maturity date, and dependence on the issuer's ability to continue payments. Investors should consult their own advisors and review official filings.