BTCS, a blockchain firm listed on the Nasdaq stock exchange, has revealed that it will pay its next dividend in BTC and, in so doing, becomes the first firm to ever do so in the history of the exchange. Part of an official statement from the company sent to the sec states that it will offer a $0.06/share dividend in BTC. But the March 16 price of BTC will be used for the payment.
BTC Dividend Comes With A New Name
The company further states that recipients will need to disclose their BTC wallet before the company can pay them in what has been termed the “bividend.” Also, the recipients will still need to fill a form with the sec, which might require them to reveal some of their details. While shareholders can expect their payments on the next day, they have a choice of receiving their dividends in fiat as well.
Commenting on the development, the company CEO, Charles Allen, remarked that the company is offering a BTC dividend to appreciate their shareholders (especially the ones that have been with them since time immemorial) with a digital asset that will continue to appreciate. Allen further said, “we have envisioned this day for a long time, especially since we bought the bividend.com domain seven years ago. Right now, we have the financial capacity to implement our company’s goals.” It is important to note that BTCS also clarified that every shareholder doesn’t need to receive their dividends in BTC. They can also opt to receive it fiat.
Future Dividend Payments
A few hours after the BTCS announced its BTC dividend, its share price surged by nearly 45% and now trades at over $4.5. However, the company didn’t specify whether it will continue to pay subsequent years’ dividends in BTC. It only stated that “the economic situation in subsequent years will determine whether we will offer future Bividends.”
Even though many investors are quick to buy or increase their BTCS shareholdings, a CNBC report warned that the fundamentals of any company are more important (especially when buying any company’s shares) than the dividends it is sharing. Despite the excitement that greeted BTCS’ announcement, the announcement coincided with the time that the crypto market was down following the Fed’s hawkish stance on interest rates.
BTC Price Action
BTC continues to trade at sub-$45K levels after dropping another 7.5% today, as indicated by Bitstamp exchange data. However, the top digital assets have been hard beat, too, with most of them recording losses in double figures. A top-level analyst with Fundstrat Global Advisors claimed that the $45K level was crucial support for the leading cryptocurrency.
Now that it has dipped below it, it will likely hit its next support, which will be found at the $40K levels, a first in nearly four months. Nevertheless, a Goldman Sachs report has revealed that BTC will still trade at over $100K before this year runs out. Thus, making it to replace gold officially as an anti-inflation asset.