BTCS, a Nasdaq-listed blockchain infrastructure and technology business, stated it would become the “first-ever” company listed on the market to pay its shareholders a dividend in bitcoin.
According to a filing with the United States Securities and Exchange Commission (SEC), BTCS intends to pay a $0.05 per share dividend in bitcoin, depending on the cryptocurrency’s value on March 16, the ex-dividend date. Dividends will be distributed on March 17, and shareholders may elect to receive the dividend in cash instead.
The dividend, dubbed the “Bividend” by BTCS, will require investors to opt-in and supply their own bitcoin wallet. Additionally, shareholders would be required to perform actions such as filing a form with the SEC, which would force them to provide some personal information.
Justification for the relocation According to Charles Allen, CEO of BTCS, the company seeks to reward long-term shareholders and “promote financial independence by enabling direct ownership of Bitcoin and other digital assets.” Allen continued:
This is a moment we have been anticipating since February 2015, when the Company acquired the domain name bividend.com. BTCS now has the financial resources necessary to carry out the Company’s objectives.
Shareholders who do not desire to receive the dividend will get $0.05 in cash in lieu of the dividend. Future bividend payments are uncertain, since the corporation said that it is “assessing the appropriateness of future Bividends.”
BTCS’s shares increased by more than 40% on the announcement of the bidding, and currently trade over $4.3. According to CNBC, financial experts advise investors avoid investing in a business only because it pays a dividend, advising them to instead concentrate on the company’s fundamentals.
The news comes amid a crypto market correction triggered by minutes from the Federal Reserve’s December meeting, which indicated the central bank was poised to adopt a hawkish stance and begin hiking interest rates while shrinking its balance sheet. Despite the losses, Goldman Sachs analysts believe BTC might reach $100,000 in the future if it gains market share from gold.