Castle lets users convert STRC dividends into Bitcoin

Castle has opened its automated financial platform to individual users, allowing customers to convert any portion of the 12% annual dividend paid by Strategy’s STRC preferred stock into Bitcoin.

Castle said in a Tuesday statement that personal account holders can choose how much of each STRC dividend payment they want to receive in cash and how much should be converted into Bitcoin.

Castle automates STRC dividend conversions

Under the new account structure, customers can keep the entire payout in cash, convert all of it into Bitcoin, or set a percentage between the two options. Once selected, the allocation runs automatically at each dividend payment unless the user changes the instruction.

Strategy pays the STRC dividend in cash, while Castle handles the subsequent Bitcoin purchase based on the percentage set by the account holder. The arrangement does not change the terms of the underlying preferred stock or turn STRC itself into a Bitcoin-paying security.

Castle said many customers choose a mixed allocation. Cash can cover expenses or remain available for other uses, while the remaining portion purchases Bitcoin without requiring a separate transfer to an exchange or brokerage account.

Co-founder and CTO João Almeida said the feature was designed for investors who want regular income while continuing to build a Bitcoin position.

“Investors have long faced a choice between earning steady yield and holding bitcoin. Castle eliminates that trade-off,” Almeida said.

According to the executive, customers can direct part of their dividend income into Bitcoin while keeping the rest as cash flow. Castle’s automation executes the allocation with each eligible payment rather than requiring users to place individual Bitcoin orders.

Operating cash, fixed-income holdings, and Bitcoin purchases sit within the same platform. Castle said the setup removes several manual steps normally involved in moving money from a bank to a brokerage or crypto onramp.

STRC pays a variable 12% annual dividend

STRC, formally called Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, is a Nasdaq-listed security with a $100 stated amount. Unlike common stock, the preferred shares are structured mainly to provide cash income and do not have a fixed maturity date.

Castle added STRC to its platform earlier in 2026. According to Strategy’s STRC information, the annualized dividend rate for record dates beginning in Sep. 2026 is 12%, based on the security’s $100 stated amount.

The 12% figure is a variable annual rate rather than a guaranteed return for every investor. Strategy states that the rate can be adjusted monthly, the effective yield depends on the market price paid for STRC, and its board must declare each cash dividend.

Dividend payments also depend on the issuer’s ability and decision to continue paying them. Strategy warns investors that the current rate does not indicate what future rates will be and could fall below its present level.

In June, Strategy shareholders approved semi-monthly payments for STRC. Record dates fall on the 15th and final day of each month, with payment scheduled for the following record date, subject to board approval.

The twice-monthly schedule started with a June 30 record date and a July 15 payment date. Castle uses the same payment cycle to carry out the cash-and-Bitcoin allocation selected by each customer.

STRC also carries risks that differ from holding Bitcoin directly. Its price can trade above or below the $100 stated amount, while the dividend rate, Strategy’s financial position, and market demand for the preferred shares can influence an investor’s total return.

Bitcoin purchased through the dividend conversion carries a separate source of volatility. Castle did not state that converting income into Bitcoin protects users from a decline in either STRC or Bitcoin prices.

Personal accounts extend Castle beyond business treasuries

Before Tuesday’s expansion, Castle served business entities that wanted to automate cash management and Bitcoin accumulation. Its clients included restaurants, gyms, churches, accounting firms, online retailers, auto dealerships, software companies, real estate businesses, and nonprofit organizations.

Rather than requiring each company to maintain separate systems for bank cash, income assets, and Bitcoin purchases, Castle allowed users to establish an allocation strategy and automate later transactions.

The company said requests from existing business customers led it to develop personal accounts. Some owners who used Castle for their companies also wanted access to the same tools for their private finances.

“Feedback we heard over and over from business owners was: ‘I love this stack — when can I use it personally?’” co-founder and CEO Stephen Cole said.

Personal access introduces the STRC allocation feature to people outside Castle’s original corporate customer base. Individual users can now apply the same automated rules to dividend income without operating through a company or nonprofit entity.

Castle has not disclosed how many business customers use its platform, how many personal accounts it expects to open, or the total value of assets it manages. The company also did not provide details in the statement about account minimums, trading fees, or the price used when converting dividend cash into Bitcoin.

U.S. users gain exposure to two different assets

For U.S. customers, the account combines exposure to a Nasdaq-listed preferred stock with purchases of a digital asset. STRC holders own a security issued by Strategy, while Bitcoin acquired from the dividend proceeds remains a separate asset.

The structure means Castle users are not receiving an in-kind Bitcoin dividend from Strategy. Strategy declares and pays cash distributions on STRC, after which Castle converts the customer’s selected amount into Bitcoin.

Such a distinction may matter for account records because users have transactions involving both dividend income and Bitcoin purchases. Castle’s statement did not explain how its platform reports the conversions for U.S. tax purposes or whether it provides cost-basis information for the acquired Bitcoin.

The Internal Revenue Service treats digital assets as property for federal tax purposes. U.S. taxpayers generally must maintain records showing when digital assets were acquired, their cost basis, and the proceeds received when they are later sold or otherwise disposed of, although the treatment of each user’s transactions depends on individual circumstances.

Castle was founded by Cole and Almeida. Boost VC and Winklevoss Capital back the company, which announced a $1 million funding round in 2025 to develop its automated Bitcoin treasury tools for small and medium-sized businesses.