BTCS is the first company in the world to offer dividends on cryptocurrency.
The following is a summary of the information that you will find on this page.
- BTSC is the first company in the world to offer dividends to its shareholders in ETH
- Customers who have been loyal to the company for a long time will be rewarded with loyalty bonuses
- Short selling is discouraged and the company’s share price will rise.
The crypto and institutional financial worlds are becoming increasingly convergent. On August 18, BTSC announced Ethereum shares will be issued at $0.05 each. (ETH). The company would become the first to issue dividends on crypto.
The company will also pay $0.35 for each share as a loyalty bonus. Shareholders who hold their shares at the transfer agent of the company between September 26, 2020 and January 26, 2030 will receive this bonus. BTCS has stated that in order to prioritize retail investors the payment of loyalty will not be available for executives or employees.
BTCS trades for $4.41 currently, so the $0.40 combined with loyalty payments is a good return on investment. According to the company this is an initiative designed to bring in new investors and reward long-term shareholders.
BTCS hope to dissuade short sellers
This move not only aims at rewarding shareholders but is also intended to discourage short sellers. Transferred shares cannot be sold or lent, so the number of short sellers is reduced.
“The Loyalty Payment is designed to reward long-term shareholders who have supported our vision and aims to limit market manipulation through predatory short-selling,” BTCS wrote a statement.
BTCS stated that the shares traded below the net asset value, which is the value of the cash and cryptocurrency combined. The current company valuation is approximately $211 million. holds 70,140 ETHMore than $300,000,000 worth of stock. The stock should be rebalanced with the assets through the dividends and loyalty payment.
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Source: crypto.news
