Blockchain infrastructure firm BTCS announced Wednesday that it has become the first Nasdaq-listed company to offer dividends paid to investors in Bitcoin.
With this move, the company aims to promote the adoption of crypto assets and blockchain technology. BTCS plans to offer a 5 cents-a-share dividend in bitcoin, with shareholders having the option to opt-out and choose cash payments instead.
BTCS offers services related to blockchain infrastructure and data analysis. As per the announcement, the company has been engaged in infrastructure development for blockchain technology since 2014.
Charles Allen, Chief Executive Officer of BTCS, said in the announcement:
“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.”
The Maryland-based firm acquired a domain called “bividend.com” in February 2015, likely planning to offer the product since then. The announcement resulted in BTCS shares jumping by nearly 44% Wednesday.
As of now, it is only a one-time payout with shareholders entitled to receive Bividends on March 17, 2022. The company is still evaluating whether to continue the offering in the future as well.