Crypto company BTCS soars 67% after it announces first-ever bitcoin dividend

• Crypto company BTCS soared 67% on Wednesday after it announced it will pay a dividend in bitcoin.
• Dubbed a "bividend," BTCS plans to pay a 5-cent dividend to its shareholders in bitcoin if they opt-in.
• The company said paying a bitcoin dividend will help promote the adoption of crypto and build its shareholder base.
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Crypto company BTCS soared as much as 67% on Wednesday after it announced plans to pay a dividend in bitcoin to its shareholders.

The move makes it the first Nasdaq-listed company to ever pay a bitcoin dividend, which the company calls a "bividend." BTCS is making the move to promote the adoption of cryptocurrencies, build its shareholder base, reward shareholders, and tighten its float by temporarily removing shares from its tradeable float.

BTCS will pay a 5-cent per-share dividend in bitcoin, based on the price of the cryptocurrency on the ex-dividend date of March 16. Investors who want to receive the dividend in bitcoin must opt-in via its transfer agent, move their shares to its transfer agent, and provide a valid bitcoin wallet address to receive the dividend.

Shareholders who don't opt-in and complete the necessary steps will instead receive the dividend in cash.

The crypto payout has been on BTCS' long-term roadmap for years, based on its purchase of the bividend.com domain name in February of 2015.

"With BTCS' year-end 2021 stock price of $3.14 per share representing a 12.6% discount to the Company's digital asset holdings and cash position of $3.56 per share, or $37.8 million, this is an ideal time to reward our shareholders with a non-taxable return-of-capital Bividend," the company said.

BTCS' stock price hit a high of $5.05 on Wednesday.