BTCS, Inc. (OTCQB: BTCS) has announced that this is the first dividend of its kind in Bitcoin history and will be paid out to shareholders on March 29th, 2018. The company held an initial public offering back in November 2017 with a valuation at $1 billion dollars and has since grown immensely thanks to their incredible growth as one of the largest publicly traded companies focusing exclusively on blockchain technologies.
BTCS stock jumped 44% after announcing the first-ever dividend payable in Bitcoin. The company’s stock is predicted to rise over the next five years, with a forecast of $400 by 2021.
The Nasdaq Composite had its worst day since February of last year on Wednesday. However, the day turned out to be extraordinarily optimistic for one of its listed firms.
The value of the blockchain is skyrocketing.
BTCS Inc. (BTCS), a blockchain technology business, had its stock rise over 44% to $4.36 at the New York closing bell, making it Nasdaq’s third-best performance behind Lixte Biotechnology (LIXT) and Mainz Biomed BV (MYNZ).
The top Nasdaq performances as of the closing on January 5, 2022. TheStockMarketWatch.com is the source for this information.
The Nasdaq, on the other hand, fell 3.3 percent on Wednesday, owing to the publication of the minutes from the Federal Open Market Committee (FOMC) meeting held in mid-December last year. The minutes indicated the Federal Reserve’s determination to hike interest rates more quickly than expected.
The Fed panic had no effect on BTCS, which declared “Bividend,” the first-ever dividend payment in Bitcoin (BTC) by a Nasdaq-listed firm, on the same day. The following are excerpts from their press statement, which was released on Wednesday:
“Based on the Bitcoin price on the ex-dividend date, BTCS proposes to pay $0.05 per share in Bitcoin. Those who do not choose to receive the Bividend in Bitcoin will get a $0.05 cash dividend.”
The statement prompted investors and dealers to increase their bids for the BTCS shares, which rose to $5.05 per share on Wednesday, a three-week high. However, profit-taking mentality caused the stock price to drop by more than 13.50 percent later in the day, although the company still ended the day in the black.
The BTCS correction is still going on.
Following the New York opening bell on Thursday, BTCS plunged another 8% to $4.01 per share, this time in line with Nasdaq, which sank about 1%.
Daily price chart for BTCS. TradingView is the source of this information.
After BTCS challenged its 50-day exponential moving average (50-day EMA; the velvet wave in the chart above) around $5.12 as resistance, the selloff looked to have intensified. Similarly, by serving as support, the 20-day EMA (the green wave) sought to restrain BTCS’s negative momentum.
The price of bitcoin has dropped to $43.7K after the Federal Reserve’s minutes reaffirm intentions to raise interest rates.
Some financial experts urged investors not to buy in BTCS because of the hoopla around its Bitcoin dividend introduction, as the stock seemed rangebound between the two important moving averages.
Ivory Johnson, the founder of Delancey Wealth Management, was among them. If investors prefer to acquire Bitcoin directly rather than via BTCS, the licensed financial counselor advised them to do so.
“When purchasing any stock, you should base your judgment on the company’s fundamentals,” he told CNBC.
Bividend is a “very good bridge” for institutional investors who wish to buy Bitcoin, according to Douglas Boneparth, president of Bone Fide Wealth. Nonetheless, he pointed out that BTCS’ offering is more of a feature than a product, emphasizing the need of focusing on other criteria before purchasing BTCS stock, such as the company’s future cash flows.
BTCS is now trading almost 85% below its all-time high of $32.40, which it reached in January 2021.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
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BTCS stock jumps 44% after announcing first-ever dividend payable in Bitcoin. The company’s shares surged over 70% on the day of the announcement. Reference: btcs reverse split.
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