Blockchain firm BTCS soars on retail rush for bitcoin dividends (updated)

BTCS

13/01/2022 14:44

(Updates prices to market open)
    Jan 13 (Reuters) - Shares in blockchain technology-focused
firm BTCS Inc  BTCS.O  rocketed on Thursday, set to extend a
four-day rally, as more retail investors scooped them up after
the company last week offered to pay dividends in bitcoin.
    The Silver Spring, Maryland-based company has seen its stock
value more than double since Jan. 5, when it proposed to pay
$0.05 per share in bitcoin to those who opt for it. Its first
bitcoin dividend, or "bividend" as BTCS calls it, is due on
March 16.  urn:newsml:reuters.com:*:nL4N2TL2Z4
    Shares of BTCS climbed 20% to a six-week high of $7.80 in
early trading on Thursday as the online buzz over its plan grew
in forums such as Reddit and stocktwits.com, which were
instrumental in the "meme stock" frenzy last year.
    Nearly 9 million BTCS shares changed hands within the first
few minutes of trading, more than double the company's public
float of 4.2 million shares. A smaller number of free float
shares makes the stock vulnerable to sharp moves.
    "This is a moment we have long anticipated since the Company
purchased the domain, bividend.com, in February 2015," CEO
Charles Allen said in a statement last Wednesday.
    BTCS, last valued at $69 million, claims to be the first
Nasdaq-listed firm to offer dividends in bitcoin. Video game
retailer GameStop  GME.N  on Friday jumped as much as 22% on
plans to launch a division to develop a marketplace for
nonfungible tokens (NFTs).  urn:newsml:reuters.com:*:nL4N2TM3BM
    Meanwhile, prices of highly-volatile cryptocurrencies have
tumbled since hitting all-time highs late last year. Bitcoin
 BTCS=BTSP  was last trading at $44,306.29 on Thursday, about
36% below its all-time peak.

 (Reporting by Medha Singh in Bengaluru; Editing by Ramakrishnan
M.)
 ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,
outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))