Blockchain firm BTCS soars on retail rush for bitcoin dividends


FILE PHOTO: A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su

(Reuters) -Shares in blockchain technology-focused firm BTCS Inc rocketed on Thursday, set to extend a four-day rally, as more retail investors scooped them up after the company last week offered to pay dividends in bitcoin.

The Silver Spring, Maryland-based company has seen its stock value more than double since Jan. 5, when it proposed to pay $0.05 per share in bitcoin to those who opt for it. Its first bitcoin dividend, or "bividend" as BTCS calls it, is due on March 16.

Shares of BTCS climbed 20% to a six-week high of $7.80 in early trading on Thursday as the online buzz over its plan grew in forums such as Reddit and stocktwits.com, which were instrumental in the "meme stock" frenzy last year.

Nearly 9 million BTCS shares changed hands within the first few minutes of trading, more than double the company's public float of 4.2 million shares. A smaller number of free float shares makes the stock vulnerable to sharp moves.

"This is a moment we have long anticipated since the Company purchased the domain, bividend.com, in February 2015," CEO Charles Allen said in a statement last Wednesday.

BTCS, last valued at $69 million, claims to be the first Nasdaq-listed firm to offer dividends in bitcoin. Video game retailer GameStop on Friday jumped as much as 22% on plans to launch a division to develop a marketplace for nonfungible tokens (NFTs).

Meanwhile, prices of highly-volatile cryptocurrencies have tumbled since hitting all-time highs late last year. Bitcoin was last trading at $44,306.29 on Thursday, about 36% below its all-time peak.

(Reporting by Medha Singh in Bengaluru; Editing by Ramakrishnan M.)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

Berlusconi-backed MFE sticks to targets despite tough start to year
Russia's VK launches RuStore for apps after exit of Western alternatives
Russia will start a pilot project for 'digital' rouble from April - cbank
Norwegian software venture targets rising cyber attack risks
China’s digital yuan goes to school with student card that gives parents control over spending
Police officer to be suspended for allegedly taking upskirt video of woman in Hong Kong’s financial district
Twitter to hold annual meeting amid Musk uncertainty
Apple spent millions, but it couldn’t pull these San Jose residents out of homelessness
'Pay more attention' Ethereum co-founder says of crypto crash
Virtual reality brings portable Taser training to police

Others Also Read