Not to sound pedantic, but virtute looks like an ablative of virtus, virtutis (3rd declension).
The ablative is a very strange case for the subject of a sentence. Very, very strange. One might even say that it is the wrong case.

One would expect the subject to be in its nominative, which in this case is virtus, leading to the more traditional, and possibly less wrong formulation:

IN MEDIO STAT VIRTUS

In the spirit of aurea mediocritas and Epicurean moderation, may I suggest that Latin sentences be cited in a canonical form ?