Castle has announced that its automated financial platform is now available to individual users. New accounts allow users to automatically convert cash dividends from STRC preferred shares issued by Strategy into Bitcoin, according to a preset ratio. Users can choose to retain all cash, purchase only Bitcoin, or allocate between the two as desired.
Dividends are initially paid in cash.
Castle stated that this feature does not alter the securities terms of STRC. Strategy continues to distribute dividends in cash under the original arrangement, after which Castle purchases Bitcoin on behalf of account holders according to their designated proportions. Therefore, users do not receive Bitcoin dividends directly from Strategy, but rather Bitcoin acquired through a secondary conversion after the cash dividend is received.
Once the ratio is set, the system will automatically execute on each qualifying dividend payment date unless the user actively modifies the instruction. Castle says this reduces the need for users to manually transfer funds between banks, brokers, and crypto platforms.
STRC currently has an annualized dividend yield of 12%.
STRC stands for Strategy Variable Rate Series A Perpetual Preferred Stock, listed on Nasdaq, with a par value of $100. According to Strategy’s disclosures, the annualized dividend rate for STRC is 12% effective from the record date of September 2026.
However, this 12% is a variable annualized rate, not a fixed rate. Strategy notes that the dividend yield may be adjusted monthly, actual returns are also influenced by the purchase price, and each cash dividend still requires board approval.
Castle also noted that STRC is not the same as holding bitcoin directly. The price of the preferred shares may be above or below the $100 par value, and total returns are influenced by the issuer’s financial condition, market demand, and dividend changes. Meanwhile, bitcoin purchased after dividend conversion is also subject to its own price fluctuations.
- STRC dividends are initially paid in cash by Strategy.
- Castle will execute Bitcoin purchases according to the predefined ratio.
- The payment cycle will continue with STRC’s existing bi-monthly schedule.
Personal accounts evolved from business clients.
Prior to this launch, Castle primarily served businesses and nonprofit organizations, helping clients automate the management of cash, income-generating assets, and Bitcoin allocations. The company noted that many existing enterprise clients expressed interest in using similar tools for personal finance, which drove the introduction of personal accounts.
João Almeida, Co-founder and CTO of Castle, said this feature is designed for investors who wish to maintain a stable cash income while continuing to accumulate Bitcoin. Co-founder and CEO Stephen Cole also noted that ongoing feedback from business owners contributed to the launch of the personal version.
To date, Castle has not disclosed the number of its enterprise customers, the expected scale of new individual accounts, minimum account thresholds, transaction fees, or the specific execution price used when converting dividends into Bitcoin.
Tax and record details have not been disclosed.
For U.S. users, this account structure involves both listed preferred shares and digital assets. Castle did not specify in its statement how the platform will handle related tax records or whether it will provide users with the cost basis information for their purchased Bitcoin.
The article states that the IRS currently treats digital assets as property. Users who later sell related Bitcoin typically need to retain records of the acquisition date, cost basis, and disposal price.
Additional information: Castle was founded by Stephen Cole and João Almeida, with investors including Boost VC and Winklevoss Capital. The company announced in 2025 that it had completed a $1 million funding round to develop an automated Bitcoin treasury tool for small and medium-sized businesses.