Blockchain technology company BTCS is offering to pay shareholders a dividend in bitcoin to showcase “the disruptive nature of blockchain technology,” according to CEO Charles Allen.
Investors can opt to receive the 5 cent-a-share dividend in bitcoin, the company said in a filing Wednesday. Otherwise they will receive the payout in cash.
The company said it’s the first Nasdaq-listed firm where shareholders have the option to receive a dividend with bitcoin. By paying in bitcoin, the company said it hopes to promote the adoption of crypto and blockchain technology. The move has been planned for a while, BTCS bought the bividend.com domain name in 2015.
“We want to reward our long-time shareholders for their continued support and encourage financial freedom by providing the means to enable direct ownership of bitcoin and other digital assets,” Allen said in the statement.
The company’s shares, which started trading in September, jumped about 40% Wednesday, taking its market capitalization to about $43 million.
While the current payout is a one-off, BTCS said it is still evaluating whether to continue the program.