A blockchain infrastructure and technology company announced on Wednesday that it will become the first Nasdaq-listed company to offer dividends in Bitcoin to its shareholders. The move comes in an effort to boost the adoption of the world’s largest cryptocurrency.
The First-Ever Bitcoin Dividend
Referred to as Bividend, the dividends will be payable to investors in $0.5 per share in bitcoin, based on the price of BTC on the ex-dividend date of March 16. Investors who want to receive the dividend in bitcoin must move their shares to a transfer agent, and provide a valid bitcoin wallet address. Shareholders can also choose to receive the payout in cash.
Commenting on the development, Charles Allen, chief executive officer of BTCS, said:
“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 US public company focused on cryptocurrencies and blockchains, the first US public company to mine Bitcoin, the first US public company to implement a digital asset treasury strategy, and the first US public company to secure next-generation proof-of-stake blockchains.”
Following the announcement, the company’s shares, which started trading in September, jumped about 40 percent on Wednesday, taking its market capitalization to about $43 million.
BTCS said that it’s the first Nasdaq-listed company where shareholders have the option to receive a dividend with bitcoin. The move doesn’t come as a surprise concerning the company buying the domain name bividend.com way back in 2015.