BTCS Stock Jumps 44% After Announcing First-Ever Dividend Payable In Bitcoin

BTCS, Inc. also known as Bitcoin Shop, Inc. is a publicly-traded company established in the United States. The company aims at developing and building applications that relate to various digital coins and blockchain databases. 

Currently, the Company has made the news once again as its stock rising above 44% after confirming its very first Dividend payable in Bitcoin. If you are interested in bitcoin trading, there are a number of apps. Check the app bitcoin profit, for example.

 

Blockchain stock is Surging

On the 5th of January, Nasdaq Composite reported its largest daily loss since last year February. However, for one of the companies listed on the platform, the day turn out to be strongly bullish. 

A blockchain technology company, BTCS Inc. (BTCS), on the 5th of January had its share value surge by approximately 44% as the New York bell closes. This saw BTCS become the third-best performer for the day on Nasdaq just after Mainz Biomed BV (MYNZ) and Lixte Biotechnology (LIXT). 

In comparison, the Nasdaq further dipped by 3.3% the next day (January 6) with losses primarily tied to the minutes of the mid-December FOMC meeting that was published. Going into the details, the minutes disclosed the motive of Federal Reserve officials to increase interest rate quicker than most anticipated. 

The Fed’s uncertainty however didn’t affect BTCS as the company’s announcement of “Bividend,” came on the same day. Bividend is the world’s first payable dividend in Bitcoin one of the companies listed on Nasdaq. According to the press release published on the 5th of January, it was indicated that BTCS plans to pay $0.05 for every Bitcoin Share. The pay will be based on the current Bitcoin price on the Ex-dividend date. However, investors who prefer not to earn Bividend in Bitcoin can as well receive a cash dividend of $0.05.

Traders and investors took the announcement as an indication to increase their BTCS stock bids given its valued surges to $5.05. At, $5.05, BTCS reached a three-week high. But, the BTCS stock price eventually dipped falling more than 13.50% in the wake of profit-taking, although it still ended the day in green

 

BTCS correction continues

On the 6th of January, just after the New York opening bell,  BTCS dipped by another 8% which saw the stock trade at $4.01 per share. This time around, the dip was in since with Nasdaq’s which also dipped by 1%. 

BTCS’s rapid sell-off seems to have been triggered when the stock tested its 50-day EMA (Exponential Moving Average) close to the $5.2 resistance. On the other hand, the 20-day EMA also tried to act as support holding the bearish propulsion from going any dipper 

As BTCS seems to consolidate between the crucial moving averages, several financial analysts have advised investors not to invest in the stock. They believe the hype surrounding the BTCS is responsible for the recent price movement. 

One of the financial experts includes Ivory Johnson, the creator of Delancey Wealth Management. He recommended that investors and traders should rather invest in Bitcoin instead of BTCS. He believes investment in BTCS right now exposes traders and investors to significant risk. During an interview with TBEN, he asserted that the ideal approach and decision to buy stocks should be founded on the company’s fundamentals.  

The chairman of Bone Fide Wealth, Douglas Boneparth, described Bividend as a neat bridge for institutional traders who would love to hold Bitcoin. However, he also mentioned that BTCS offering is less of a product and more of a feature. He emphasized that investors should evaluate other factors before jumping to invest in BTCS stocks. Douglas asserted that further cash flow of the company should be looked into by investors before investing in BTCS stocks. 

Presently, BTCS is trading at about 85% dip at price from its all-time high of $32.40 which was reached in January 2021. 

Conclusion

The opinions and views conveyed here are attributed solely to the author and do not reflect the perspective of the platform. However, do have it in mind that every investment comes with a risk and you always have to protect yourself from such risks. 

Therefore we advise that you do your research so you can make informed decisions about investing in a stock.

Note: Not a financial advisor. This article should not be used to inform your financial decisions.