BTCS stock jumped nearly 70% after the ‘pure-play’ blockchain IT company announced that shareholders would have the option of receiving quarterly dividends in Bitcoin and revealed that its holdings of cash and digital assets offer a breakage value of 12.6% higher than its year 2021. – final share price.
BTCS stock is currently trading at $ 4.22 per share, up 39.7% from Tuesday’s closing price of $ 3.02. By mid-morning on Wednesday, BTSC stock was trading up to $ 4.95 per share. As of midday Thursday EDT (UTC-5), 2.07 million BTCS shares were traded, compared to 1.23 million average daily trading volume.
BTCS announced in a 8-K deposit with the U.S. Securities and Exchange Commission (SEC) ahead of the market opening on Wednesday that it would pay a cash dividend of $ 0.05 per share, giving shareholders the option of receiving the payment in Bitcoin – dubbed a Bividend – based on the conversion rate at 4:00 p.m. EDT (UTC-5) on March 16, as reported by Yahoo! Finance.
Bitcoin is currently trading at $ 42,945.65, according to Yahoo! Finance. BTSC’s board of directors approved the disbursement on January 2. The dividend will be distributed to shareholders of record on March 17.
“With BTCS ‘stock price at the end of 2021 of $ 3.14 per share, which represents a 12.6% discount on the company’s digital holdings and a cash position of 3 , $ 56 per share, or $ 37.8 million, “the company said in its announcement. “This is the perfect time to reward our shareholders with a Bividend tax-free return of capital. “
The Silver Spring, MD-based company claims to be the first public company listed on the Nasdaq to offer shareholders the option of receiving dividends in cryptocurrency. BTCS trades on the Nasdaq exchange under the symbol BTCS.
Shareholders choose to receive Bividend
This has been in the planning stages for some time, as BTCS secured the Bividend.com web domain name in 2015. In order to receive the Bividend, shareholders will need to go to Bividend.com and provide a crypto wallet address. specific currency as part of a membership agreement via DocuSign.
Additionally, in order to receive the Bividend, shareholders will need to transfer their BTCS holdings from their current brokerage account to BTCS’s transfer agent, Equity Stock Transfer.
Shareholders who do not take any action, or initiate the process but do not complete it, will receive their dividend in US dollars.
“We want to reward our longtime shareholders for their continued support and encourage financial freedom by providing the means to enable direct ownership of Bitcoin and other digital assets,” BTCS CEO Charles Allen said in the same communicated. “As we build a fundamental long-term shareholder ownership base, the payment of this Special Bividend is an important step in showing the disruptive nature of blockchain technology.”
Read More: Bitcoin Price Prediction 2025: Will The Coin Hit $ 100,000?
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