BTCS Stock (BTCS): Why The Price Surged

By Amit Chowdhry ● Jan 6, 2022
  • The stock price of BTCS Inc (NASDAQ: BTCS) increased by 43.89% in the most recent trading session. This is why it happened.

The stock price of BTCS Inc (NASDAQ: BTCS) – a blockchain technology-focused company – increased by 43.89% in the most recent trading session. Investors are responding positively to BTCS announcing the first-ever dividend payable in Bitcoin by a Nasdaq-listed company, which the company refers to as a “Bividend.” And the company also published a new investor presentation on its website (btcs.com) to provide more insight regarding recent successes and future growth plans, as well as the underlying market dynamics expected to drive BTCS’ growth in 2022.

Since 2014, BTCS committed to developing the infrastructure supporting blockchain technology. And continuing this journey, BTCS is now opening the next chapter of delivering on our mission to further promote the adoption of crypto and blockchain technology.

What is a Bividend?

A Bividend is a dividend payable to shareholders of record at their election in Bitcoin or cash.

How much is the Bividend?

BTCS plans to pay $0.05 per share in Bitcoin, based on the Bitcoin price on the ex-dividend date. And investors who do not elect to receive the Bividend in Bitcoin will receive a cash dividend of $0.05.

When will it be Paid?

The company set a record date of March 17, 2022 to leave ample time for our shareholders to complete the opt-in process by the March 16, 2022 Ex-Dividend date opt-in deadline. And the Bividend and cash equivalent dividend for those not electing to receive a Bividend will be paid as soon practical after the record date.

Will Future Bividend Payments Occur?

BTCS is very much in the growth phase. That said, the company is evaluating the appropriateness of future Bividends.

Despite a recent pull-back in line with the broader cryptocurrency market, BTCS’ stock price and market capitalization since 2019 have appreciated significantly as the value of the Company’s digital assets and cash has rapidly increased.

KEy QUOTES:

“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. In the crypto space BTCS has a long history of firsts, including being the first pure-play U.S. public company focused on cryptocurrencies and blockchains, the first U.S. public company to mine Bitcoin, the first U.S. public company to implement a digital asset treasury strategy, and the first U.S. public company to secure next-generation proof-of-stake blockchains.”

“Now, we are the first Nasdaq-listed company to pay a Bividend, a dividend payable in Bitcoin at the option of our shareholders. This is a moment we have long anticipated since the Company purchased the domain, bividend.com, in February 2015. BTCS is now in the financial position required to execute on the Company’s vision.”

“With BTCS’ year-end 2021 stock price of $3.14 per share representing a 12.6% discount to the Company’s digital asset holdings and cash position of $3.56 per share, or $37.8 million, this is an ideal time to reward our shareholders with a non-taxable return-of-capital Bividend.”

“As we build an ownership base of long-term, fundamental shareholders, the payment of this special Bividend is an important step in showcasing the disruptive nature of blockchain technology.”

— Charles Allen, Chief Executive Officer of BTCS

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.