Crypto News

Blockchain firm BTCS soars on retail rush for bitcoin dividends

On Thursday, shares in blockchain-focused company BTCS Inc shot up. This was due to an extension of a four-day rally as more retail investors scooped the shares up after the company offered to pay dividends last week.

Silver Spring, Maryland-based company has seen more than doubling in stock value since Jan. 5, when the company proposed to pay $0.05 per bitcoin share to all who opted for it. The company’s March 16th bitcoin dividend (or “bividend”) is due.

Premarket trading saw shares of BTCS rise 31.5% to $8.86 on Thursday, as online buzz grew over the plan in forums like Reddit and stocktwits.com. This was due to the success of the meme stock frenzy last summer.

Close to 5 million BTCS shares were traded, which is more than the company’s public float (4.2 million shares). Sharp moves are possible because the stock has a smaller free float share count.

Charles Allen, CEO, stated that “This is the moment we have been anticipating since the Company bought the domain, bividend.com in February 2015” in a statement on Wednesday.

BTCS, which was last valued at $69million, claims to be first Nasdaq-listed company to offer bitcoin dividends. GameStop, a video game retailer, saw its stock jump as high as 22% Friday on plans to create a division that will offer a marketplace for nonfungible tokens.

The prices of volatile cryptocurrencies, which are highly volatile, have fallen since their all-time highs at the end of last year. Bitcoin traded at $43,876.67 last Thursday, 36% lower than its peak.