The world’s first Bitcoin dividends, or Bividends, will be paid on March 16th 2022. The project is led by BTCS, a publicly traded business situated in Silver Spring, Maryland (USA), which has proposed to pay $0.05 per share in BTC to shareholders who choose to participate. Those who do not opt in will still be able to get their profits in US dollars.
BTCS stock soared after the announcement on Wednesday. By the time the market closed, the stock had risen nearly 44%. In the first few minutes of trading on the Nasdaq, approximately 9 million shares were traded at an average price of $7.8, more than doubling the company’s internal public float. However, the price has dropped again. BTCS is the first Nasdaq-listed business to offer Bitcoin dividends, with a market valuation of around $69 million.
Be aware that a number of crypto-commentators have already begun to poke holes in the concept of paying dividends in bitcoin. For starters, bitcoin and cryptocurrencies in general are primarily attractive as speculative assets. Traders adore them because of their high volatility and possibility for profit. Bitcoin isn’t bought for its future cash flow because it doesn’t have one. Buying bitcoin for the purpose of income – that is, dividends paid out of cash flow – makes even less sense.
To top it off, this is a one-time dividend. The exciting part – or frustrating part, depending on your point of view – is that BTCS is unlikely to be the last company to offer a bitcoin dividend. That’s because, if nothing else, BTCS’ action was an effective attention-getting strategy. However, the firm’s one-time bitcoin (or cash) payout has no bearing on the stock’s investing thesis.
In terms of the concept of bividends in general, it’s safe to assume that we’ll see imitators — and many of them – in no time. To summarise, quaint, old-fashioned common stock dividend investors would do well to tune out this hubbub for the time being — and then some.
Shareholders would also have to complete a few more processes, including filling out a form with the Securities and Exchange Commission, which would require them to disclose their name, Social Security number, and bitcoin wallet address.
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