Castle Unveils Personalized Dividend Payments in Both Cash and Bitcoin
Crypto financial tech company Castle has announced that its automated Bitcoin savings stack is now open to individual users. This move marks a significant shift in the company's business model, which previously catered only to businesses such as restaurants, gyms, and e-commerce platforms.
The company's innovation lies in its dividend payment system, where users can choose to receive their 12% annualized dividends in either cash or Bitcoin, or any combination of both. According to Castle's CTO João Almeida, this feature addresses the long-standing dilemma faced by investors who must choose between stable returns and holding onto Bitcoin.
The company's Strategy-issued perpetual preferred stock STRC, which was introduced earlier this year, is the source of these dividends. Payments are made on a bi-monthly basis. While users can opt to receive 100% of their dividends in cash or exchange them entirely for Bitcoin, most investors are expected to choose a middle ground.
By automatically converting a portion of their dividend payments into Bitcoin at each payout, users can balance their need for liquidity with the potential for long-term growth. Castle's decision to open its platform to individual users was prompted by repeated requests from entrepreneurs who saw the value in such a service.