BTCS stock rose 23% in pre-market trading on January 13, 2022, after the company announced it added Algorand to its blockchain infrastructure and that it would pay its dividend in Bitcoin.
BTCS Adds Algorand to its Blockchain Infrastructure Operations
On January 13, 2022, BTCS Inc. (Nasdaq: BTCS), a blockchain technology-focused company, announces it has added Algorand (“ALGO”) to its infrastructure staking operations. Algorand’s blockchain features asset development, atomic swaps and smart contract execution. BTCS earns revenue by being rewarded with additional tokens. The Company has also deployed a proprietary script to compound its rewards daily.
Launched in 2019 by Turing Award-winning MIT professor and computer scientist, Silvio Micali, ALGO is an $9.5-billion payments-focused, decentralized network that enables processing speeds of 1,000 transactions per second (“TPS”) and achieves block finality in less than five seconds.
“More than 500 global organizations leverage Algorand’s technology – from university partners (MIT, UC Berkeley, Peking University), to ecosystem players (Orion Protocol, Chainalysis, Hummingbot), to key stakeholders (Union Square Ventures, Cumberland Advisors), to government enterprises (Marshall Islands). Given this, we believe ALGO is a great addition to our blockchain infrastructure efforts,” stated Michal Handerhan, Chief Operating Officer of BTCS.
“The ALGO Foundation proposed a roadmap going out as far as 2030 focusing on ecosystem support, community incentives and decentralized governance. We look forward to monitoring its developments over the years,” said Mr. Handerhan.
📺 What is Algorand? ALGO Explained with Animations
Nasdaq-listed BTCS is an early mover in the blockchain and digital asset ecosystem, and the first “Pure Play” U.S. publicly traded company focused on blockchain infrastructure and technology. Through its blockchain infrastructure operations, the Company secures Proof-of-Stake blockchains by actively processing and validating blockchain transactions and is rewarded with native digital tokens. The Company is developing a proprietary Staking-as-a-Service platform to allow users to stake and delegate supported cryptocurrencies through a non-custodial platform. The Company is also developing a proprietary digital asset data analytics dashboard that allows users to evaluate their crypto portfolio from across multiple exchanges and wallets in a single place, with plans to add staking as a service functionality in the future. The Company employs a digital asset treasury strategy with a primary focus on disruptive non-security protocol layer assets. For more information visit: https://www.btcs.com.
BTCS First-ever Nasdaq-listed Company to Offer a Dividend Payable in Bitcoin
On January 5, 2022, BTCS Inc. (Nasdaq: BTCS) announced the first-ever dividend payable in Bitcoin by a Nasdaq-listed company, which the Company refers to as a Bividend. The Company also published a new investor presentation on its website (www.btcs.com) to provide more insight regarding recent successes and future growth plans, as well as the underlying market dynamics expected to drive BTCS’ growth in 2022.
Paramount to the ethos of BTCS are cryptocurrency adoption and financial freedom. Since 2014, BTCS has committed to developing the infrastructure supporting blockchain technology. Continuing this journey, BTCS is now opening the next chapter of delivering on our mission to further promote the adoption of crypto and blockchain technology.
What is a Bividend?
A Bividend is a dividend payable to our shareholders of record at their election in Bitcoin or cash.
How much is the Bividend?
BTCS intends to pay $0.05 per share in Bitcoin, based on the Bitcoin price on the ex-dividend date. Investors who do not elect to receive the Bividend in Bitcoin will receive a cash dividend of $0.05.
Why Offer a Bividend?
“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,” stated Charles Allen, Chief Executive Officer of BTCS. “In the crypto space BTCS has a long history of firsts, including being the first pure-play U.S. public company focused on cryptocurrencies and blockchains, the first U.S. public company to mine Bitcoin, the first U.S. public company to implement a digital asset treasury strategy, and the first U.S. public company to secure next-generation proof-of-stake blockchains.”
Allen continued, “Now, we are the first Nasdaq-listed company to pay a Bividend, a dividend payable in Bitcoin at the option of our shareholders. This is a moment we have long anticipated since the Company purchased the domain, bividend.com, in February 2015. BTCS is now in the financial position required to execute on the Company’s vision.” With BTCS’ year-end 2021 stock price of $3.14 per share representing a 12.6% discount to the Company’s digital asset holdings and cash position of $3.56 per share, or $37.8 million, this is an ideal time to reward our shareholders with a non-taxable return-of-capital Bividend.
“As we build an ownership base of long-term, fundamental shareholders, the payment of this special Bividend is an important step in showcasing the disruptive nature of blockchain technology” continued Allen.
How do you participate in the Bividend?
The steps required to become a record holder on the books and records of our transfer agent, Equity Stock Transfer, and opt-in to the Bividend are outlined on bividend.com and disclosed on a Form 8-K filed with the Securities and Exchange Commission on January 5, 2022. Any shareholders of record who do not opt-in to receive their Bividend will instead receive an equivalent cash dividend. The Company is working with Equity Stock Transfer, LLC, a New York City based SEC registered transfer agent, to coordinate the logistics and processing of the Bividend.
When will it be Paid?
We have set a record date of March 17, 2022 to leave ample time for our shareholders to complete the opt-in process by the March 16, 2022 Ex-Dividend date opt-in deadline. The Bividend and cash equivalent dividend for those not electing to receive a Bividend will be paid as soon practical after the record date.
Will Future Bividend Payments Occur?
BTCS is very much in the growth phase. That said, the Company is evaluating the appropriateness of future Bividends.
Meanwhile, despite a recent pull-back in line with the broader cryptocurrency market, BTCS’ stock price and market capitalization since 2019 have appreciated significantly as the value of the Company’s digital assets and cash has rapidly increased, as shown in the charts below.
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📈 BTCS Stock Technical Analysis
The short-term trend is positive, while the long-term trend is neutral. So this is evolving in the right direction. The large players volume has exploded higher which is very bullish. Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up. BTCS is currently trading in the middle of its 52-week range. The S&P500 Index however is currently trading near new highs, so BTCS is lagging the market. Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.
The technical rating of BTCS is bad and it also does not present a quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when BTCS stock consolidates and is a good long entry.