[DigitalToday reporter Jinju Hong (홍진주)] Castle, a U.S. bitcoin management service provider, has released a function that automatically converts dividends from Strategy's STRC preferred shares into bitcoin.

CoinPost, a blockchain media outlet, reported on Tuesday (local time) that users can take all dividends in cash, switch all of them into bitcoin, or split them between the two assets at any ratio.

The function applies to STRC, a floating-rate preferred share issued by Strategy. STRC is a preferred share with a par value of $100. It has no fixed maturity and is designed mainly to generate cash income through dividends. Preferred shares typically have priority over common shares in dividend payments but generally do not carry voting rights.

The key is that bitcoin purchases proceed automatically without users having to move funds separately after receiving dividends. Users can freely set the cash portion at the setup stage. Unless they instruct a change, the same allocation method continues to apply to the next dividend. Castle explained that users can receive all dividends in cash, convert all of them into bitcoin, or combine the two at a desired ratio.

The dividend structure itself does not change. Strategy still pays STRC dividends in cash. Castle said it only executes bitcoin purchases according to the ratio set by users, and that the function does not change STRC's contract terms or make STRC a security that pays dividends in bitcoin.

Users are leaning toward mixing cash and bitcoin. Castle said many users choose an allocation that combines cash and bitcoin. The cash portion can be used for living expenses, while the remaining amount can be put directly into bitcoin purchases without being transferred separately to an exchange or brokerage account.

Dividend terms are also drawing attention. Strategy said the annual dividend rate applied on record dates after September 2026 is 12 percent based on a $100 par value. It said the figure is a floating rate reviewed monthly and is not a guaranteed yield. For investors seeking dividend income, interest-rate volatility is also something to check along with the bitcoin purchase function.

The payment cycle has already changed. After shareholder approval in June, Strategy adjusted dividend payments to twice a month. It applied the change starting with the July 15 payment for holdings as of June 30. Castle's automatic allocation function also operates in line with this schedule. STRC holders can now choose an approach that uses semi-monthly cash dividends for living funds while steadily accumulating some portion in bitcoin.

The function can be seen as a structure that links demand for Strategy-related investment with demand to accumulate bitcoin by automating bitcoin purchases using dividends as a source of funds. However, because actual dividend payments are made in cash and Castle executes the bitcoin conversion afterward, investors need to check STRC's dividend terms and floating-rate structure together.