Castle adds automated Bitcoin conversion for STRC dividend investors

The new feature automates the conversion process, sparing users from manual transfers between bank accounts and crypto exchanges. When Strategy pays its 12% variable annual dividend on STRC shares, Castle executes a Bitcoin purchase based on the percentage previously selected by the account holder. Customers maintain full control over the split, opting for total cash, full Bitcoin conversion, or a hybrid approach.

Co-founder and CTO João Almeida noted the design aims to bridge the gap for investors seeking regular income without sacrificing their Bitcoin accumulation strategy. While the underlying security remains a traditional Nasdaq-listed preferred stock, this integration simplifies the workflow for those looking to build crypto positions using yield. CEO Stephen Cole added that the expansion responds to persistent requests from existing corporate clients who wanted access to the same automation tools for their personal finances.

Investors should note that STRC dividends are paid in cash by Strategy, with Castle performing the secondary purchase. The security itself does not change, and the 12% yield remains subject to board approval and market adjustments. Because the IRS treats digital assets as property, users must track their own cost basis and transaction records for tax reporting, as the platform integration does not alter the underlying tax status of the dividends or the subsequent Bitcoin acquisitions.