BTCS is offering shareholders an option to receive dividends in bitcoin following a year of $1.2m in revenue and a healthy share price.
The BTCS crypto company has become the first NASDAQ-listed company to offer its shareholders dividends in bitcoin. Its share price increased by 41% following the announcement to $4.40 per share, increasing its market capitalization to over $43M. The Silver Spring, Maryland-based firm, started trading on the NASDAQ on Sept 14, 2021.
BTCS had long been planning to issue “bividends,” (bitcoin dividends), even purchasing the domain name “bividend.com” in February 2015. It will pay out five cents-per-share dividends in bitcoin based on the price of bitcoin on March 16, 2022. Investors wishing to receive this bitcoin dividend have to opt-in via the company’s transfer agent, move shares to the transfer agent, and provide a bitcoin wallet address. BTCS claims to be doing this to promote cryptocurrencies, build a shareholder base, and reward shareholders. Investors who do not want to receive their Bitcoin dividends will receive the dividends of $0.05 per share in cash.
“With BTCS’ year-end 2021 stock price of $3.14 per share representing a 12% discount to the company’s digital asset holdings and cash position of $3.56 per share, or $37.8M, this is an ideal time to reward our shareholders with a non-taxable return-of-capital “bividend,” the company said.
Who is BTCS?
BTCS was one of the first US publicly-traded companies to concentrate its efforts on blockchain technology infrastructure. Two NASA engineers founded the company in 2014. It secures blockchains by processing and validating network transactions in order to be rewarded in digital assets.
The firm operates validator nodes and also owns an analytics platform, allowing users to consolidate their crypto trade data onto one platform. This single platform provides facilities to scrutinize token performance, risk metrics and potential tax implications.
It has grown its business by helping to validate transactions on blockchains such as Ethereum, Tezos, and Cosmos. BTCS is also developing its “Staking-As-A-Service” technology to run validator nodes on proof-of-stake blockchains.