BTCS stock jumps 44% after announcing first-ever dividend payable in Bitcoin

2 years ago

On Jan. 5, Nasdaq Composite logged its biggest regular loss since February past year. But for 1 of its listed companies, the time turned retired to beryllium highly bullish.

Blockchain banal soars

The stock worth of BTCS Inc. (BTCS), a blockchain exertion company, surged astir 44% to $4.36 astatine the New York closing bell, frankincense becoming the third-best performer connected Nasdaq aft Lixte Biotechnology (LIXT) and Mainz Biomed BV (MYNZ).

In contrast, Nasdaq plunged 3.3% connected January 6, its losses driven chiefly by the merchandise of the minutes of the Federal Open Market Committee (FOMC) gathering successful mid-December past year. In detail, the minutes revealed the Federal Reserve officials' intention to rise involvement rates faster than anticipated.

The Fed scare did not interaction BTCS, for it arrived connected the aforesaid time the institution announced "Bividend," the first-ever dividend payable successful Bitcoin (BTC) by a Nasdaq-listed company. Excerpts from a property release published connected Jan. 5 uncover that:

"BTCS intends to wage $0.05 per stock successful Bitcoin, based connected the Bitcoin terms connected the ex-dividend date. Investors who bash not elite to person the Bividend successful Bitcoin volition person a currency dividend of $0.05."

Investors/traders took the announcement arsenic a cue to rise their bids for the BTCS stock, insofar that its worth per stock jumped to $5.05 connected Jan. 5, a three-week high. However, the banal terms aboriginal fell by much than 13.50% amid profit-taking sentiment but wide closed the time successful profits.

The BTCS correction continues

BTCS dropped by different 8% to $4.01 per stock pursuing the New York opening doorbell connected Jan. 6, this clip successful sync with Nasdaq, which fell astir 1%.

The selloff appeared to person accelerated aft BTCS tested its 50-day exponential moving mean (50-day EMA; the velvet question successful the illustration above) adjacent $5.12 arsenic resistance. In a akin fashion, the 20-day EMA (the greenish wave) attempted to bounds BTCS's downside momentum by acting arsenic support.

As BTCS looked rangebound betwixt the 2 captious moving averages, immoderate fiscal experts warned investors to not put successful the banal based connected hype surrounding its Bitcoin dividend launch.

That included Ivory Johnson, laminitis of Delancey Wealth Management. The chartered fiscal advisor recommended that investors bargain Bitcoin straight if they privation to bargain it alternatively of seeking its vulnerability via BTCS.

"When buying immoderate stock, your determination should beryllium based connected the fundamentals of the institution itself," helium told CNBC.

Douglas Boneparth, president of Bone Fide Wealth, called Bividend a "really neat bridge" for organization investors who privation to ain Bitcoin. Nonetheless, helium noted that BTCS's offering is much a diagnostic and little a product, underscoring that investors should absorption connected different factors earlier buying BTCS shares, specified arsenic the company's aboriginal currency flows.

Currently, BTCS is trading astir 85% little than its all-time precocious of $32.40, established earlier successful Jan. 2021.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

View source