Bitcoin Dividend Announcement Spikes BTCS shares by 51%
After reaching a one-year low on Tuesday, the shares of BTCS Inc. has spiked 51% on Wednesday. The surge follows after the blockchain technology-focused company’s announcement of its first-ever Bitcoin dividend.
BTCS Shareholders To Get Dividends in Bitcoin
In what it calls the ‘Bividend’, shareholders may now get their dividends payable in Bitcoin, says BTCS in a statement. However, a shareholder holds the right to receive their dividend in regular cash payout as well.
According to BTCS, the company is looking to promote the adoption of blockchain technology and crypto with this move of paying in bitcoin.
Interestingly, the move has been planned from way back in 2015 when BTCS initially bought the bividend.com domain name.
And according to the CEO of the company, Charles Allen
“We want to reward our long-time shareholders for their continued support and encourage financial freedom by providing the means to enable direct ownership of bitcoin and other digital assets”
The company’s shares, which started trading in September, jumped about 51% Wednesday, taking its market capitalization to 47.06 million at the time of writing.
While the current payout is a one-off that will see shareholders on record paid a dividend of 5 cents a share on March 17, BTCS will consider whether or not to go on with the program.
Allen went on to highlight how BTCS is the first Nasdaq-listed company to pay a Bividend — a dividend payable in bitcoin at the option of shareholders.
According to him, the special dividend payment is an important step towards building a long-term shareholder base.
On Tuesday, the stock hit its lowest price since exactly a year ago (January 5, 2021) after falling 48.2% over the past 3 months.