The past year has been an exciting time for cryptocurrencies, especially for cryptocurrencies Bitcoin (CCC:BTC-USD). Celebrities and institutional investors have jumped on board, and major companies have enabled crypto payments. release ProShares Bitcoin ETF Strategy (New York:BetoIt drove the cryptocurrency to a record shy of $70,000. While BTC has fallen since then, it is clear that we are in a new era of cryptocurrency.
right Now BTCS (NASDAQ:BTCS), a publicly listed blockchain technology company, to revolutionize the field. BTCS stock has been in the spotlight this week after the company announced that it will offer investors the opportunity to take profits from Bitcoin.
Why is this important?
The market is surely ready for such an offer. After his recent election, New York City Mayor Eric Adams stated that he will take his first three salaries in bitcoin, in response to a similar decree from Miami Mayor Francis Suarez. This shows that the #1 cryptocurrency is still entering the mainstream.
However, not everyone is a fan. Even with prominent voices predicting a bright future for bitcoin prices, not everyone agrees with BTCS. Shares rose more than 40% after the announcement, but questions remain. Let’s look at the bitcoin earnings of BTCS stockholders through a broader lens.
What to Know About Bitcoin Dividends for BTCS Stocks
- According to Charles Allen, CEO of BTCS, the company’s decision was motivated by highlighting the “disruptive nature of blockchain technology.”
- The BTCS team called this initiative “bividend”. The SEC filing states that the company “intends to pay $0.05 per share of Bitcoin, based on the price of Bitcoin on the ex-dividend date.” Investors who make a decision not to receive a dividend will receive 5 cents per share in cash.
- How do you get profits? As the BTCS notes, they require contributors to follow an opt-in process. The deadline for doing so is March 16, 2021. BTCS says it will pay dividends as soon as possible after this deadline.
- The company is currently evaluating future dividend payments.
- Some industry critics were quick to raise concerns about the dividend plan. Ivory Johnson Delancey Wealth Management Tell CNBC Buying Bitcoin outright was a better strategy than buying BTCS shares just for that kind of profit.
- This sentiment was echoed by Bitcoin investor Douglas Bonbarth at great wealth Who embraced supporting the idea behind earnings but agreed with Johnson. He says that dividends alone are not a reason to buy BTCS shares.
- BTCS contributors who choose to receive dividends must provide and secure their Bitcoin wallet. This may be a deal breaker for investors without prior experience investing in cryptocurrencies.
- It’s also worth noting that anyone who chooses a dividend will be asked to fill out an SEC form which will ask not only for their Bitcoin wallet address but for their Social Security number.
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At the date of publication, Samuel O’Brient did not have any positions (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.