Blockchain firm BTCS will pay dividends in bitcoin to its investors.The Nasdaq-listed company has become the first to offer such a dividend option in U.S. markets.BTCS is still evaluating if future dividends will also be paid out in BTC.
BTCS Inc., a Nasdaq-listed blockchain technology company, will make its next dividend payment in bitcoin in a first for U.S. markets, according to a Wednesday filing with the Securities and Exchange Commission (SEC).
“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,” BTCS CEO Charles Allen said in a statement.
Investors can opt-in to the bitcoin dividend, which BTCS is calling a “Bividend,” by March 16, 2022. The dividend’s record date is set for the next day, and those who don’t choose to receive it in BTC will get it in the traditional cash format instead.
BTCS is still evaluating whether this will be a one-off type of dividend structure or if future Bividend payments will be made.
In addition to blockchain infrastructure, BTCS offers a data analytics platform for customers interested in gathering insights from their cryptocurrency portfolios through an integration with popular exchanges, including Coinbase, Kraken, and Gemini.
BTCS’s market capitalization has soared in three years, jumping from $1 million in 2019 to $33 million in 2021, as per the filing. After the Wednesday announcement, BTCS’s shares jumped more than 30% in under an hour to $4, leading to an increase in market capitalization of nearly $10 million.
Equity Stock Transfer LLC, a New York City-based SEC-registered transfer agent, will act as BTCS’s transfer agent and keep track of record holders on its books. The company will also help the blockchain firm coordinate the logistics and processing of the bitcoin dividend.
Source: https://bitcoinmagazine.com/markets/nasdaq-listed-btcs-to-pay-dividend-in-bitcoin
