Blockchain company BTCS announces dividend payment in Bitcoin, share price rises 44%
Blockchain company BTCS announces dividend payment in Bitcoin, share price rises 44%.
On January 5th, the Nasdaq posted its largest daily loss since last February, but it turned out to be extremely optimistic about one of the companies it listed.
Pay dividends in Bitcoin
The share value of BTCS Inc. (BTCS), a blockchain technology company, ended up rising nearly 44% to $ 4.36, becoming the third best performer on the Nasdaq behind Lixte Biotechnology (LIXT) and Mainz Biomed BV (MYNZ).
Best-performing Nasdaq stocks as of January 5, 2022 | Source: TheStockMarketWatch.com
In contrast, the Nasdaq fell 3.3% on January 6, mainly due to the release of the minutes of the FOMC meeting in mid-December last year, which revealed an intention to hike rates. Fed) officials.
The Fed’s fears had no impact on BTCS, as the company did on the same day announced “Bividend” – the first dividend paid in Bitcoin by a company listed on Nasdaq.
“BTCS intends to pay $ 0.05 per share in bitcoin based on the bitcoin price on the ex-dividend day. Investors who do not choose to receive Bividend in Bitcoin will receive $ 0.05 in cash. “
Investors / traders took this announcement as a sign to raise their bids on BTCS stock, rising to $ 5.05 on Jan. 5, a three-week high. However, the stock price fell more than 13.5% on profit-taking, but ended the session profitably overall.
BTCS continues to correct
BTCS fell another 8% to $ 4.01 after the opening bell on Jan. 6, this time in sync with the Nasdaq, nearly 1%.
BTCS daily frame price chart | Source: TradingView
The sell-off appears to have accelerated after BTCS tested the 50-day exponential moving average (50-day EMA – velvet wave in the graph above) near the $ 5.12 resistance level. Similarly, the 20-day EMA (green wave) has tried to limit the BTCS downside by acting as support.
With BTCS looking for a range between two major EMAs, several financial experts have warned investors not to invest in stocks based on the hype surrounding the Bitcoin dividend introduction.
Ivory Johnson, founder of Delancey Wealth Management, recommends investors buy Bitcoin directly instead of getting exposure through BTCS.
“When buying a stock, your decision should be based on the fundamentals of the company itself.”
Douglas Boneparth, President of Bone Fide Wealth, called Bividend a “decent bridge” for institutional investors who want to own Bitcoin. However, he pointed out that BTCS’s bividend offering was more of a function than a product, and stressed that before buying BTCS stock, investors should focus on other factors, such as cash flow, the company’s future .
Currently, BTCS is trading nearly 85% below its all-time high (ATH) of $ 32.4, which was set in January 2021.
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Blockchain company BTCS announces dividend payment in Bitcoin, share price rises 44%
Blockchain company BTCS announces dividend payment in Bitcoin, share price rises 44%.
On January 5th, the Nasdaq posted its largest daily loss since last February, but it turned out to be extremely optimistic about one of the companies it listed.
Pay dividends in Bitcoin
The share value of BTCS Inc. (BTCS), a blockchain technology company, ended up rising nearly 44% to $ 4.36, becoming the third best performer on the Nasdaq behind Lixte Biotechnology (LIXT) and Mainz Biomed BV (MYNZ).
Best-performing Nasdaq stocks as of January 5, 2022 | Source: TheStockMarketWatch.com
In contrast, the Nasdaq fell 3.3% on January 6, mainly due to the release of the minutes of the FOMC meeting in mid-December last year, which revealed an intention to hike rates. Fed) officials.
The Fed’s fears had no impact on BTCS, as the company did on the same day announced “Bividend” – the first dividend paid in Bitcoin by a company listed on Nasdaq.
“BTCS intends to pay $ 0.05 per share in bitcoin based on the bitcoin price on the ex-dividend day. Investors who do not choose to receive Bividend in Bitcoin will receive $ 0.05 in cash. “
Investors / traders took this announcement as a sign to raise their bids on BTCS stock, rising to $ 5.05 on Jan. 5, a three-week high. However, the stock price fell more than 13.5% on profit-taking, but ended the session profitably overall.
BTCS continues to correct
BTCS fell another 8% to $ 4.01 after the opening bell on Jan. 6, this time in sync with the Nasdaq, nearly 1%.
BTCS daily frame price chart | Source: TradingView
The sell-off appears to have accelerated after BTCS tested the 50-day exponential moving average (50-day EMA – velvet wave in the graph above) near the $ 5.12 resistance level. Similarly, the 20-day EMA (green wave) has tried to limit the BTCS downside by acting as support.
With BTCS looking for a range between two major EMAs, several financial experts have warned investors not to invest in stocks based on the hype surrounding the Bitcoin dividend introduction.
Ivory Johnson, founder of Delancey Wealth Management, recommends investors buy Bitcoin directly instead of getting exposure through BTCS.
“When buying a stock, your decision should be based on the fundamentals of the company itself.”
Douglas Boneparth, President of Bone Fide Wealth, called Bividend a “decent bridge” for institutional investors who want to own Bitcoin. However, he pointed out that BTCS’s bividend offering was more of a function than a product, and stressed that before buying BTCS stock, investors should focus on other factors, such as cash flow, the company’s future .
Currently, BTCS is trading nearly 85% below its all-time high (ATH) of $ 32.4, which was set in January 2021.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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