Last week saw cryptocurrency prices crash, but it also brought an exciting new development. Blockchain technology company BTCS (NASDAQ:BTCS) broke the news that it would allow investors to receive dividends in Bitcoin (CCC:BTC-USD). Since then, the “bividend” has received considerable traction as investors ponder what it may mean for crypto markets. The company isn’t stopping there, though. BTCS stock has been rising all morning following another announcement from the company. BTCS is expanding its infrastructure staking operations with the addition of Algorand (CCC:ALGO-USD).
What’s Happening With BTCS Stock
Since this development was announced this morning, BTCS stock has been moving upward. It spiked as markets opened this morning. Despite a slight downtick, it has been quick to rebound and is up 18% as of this writing. The two catalysts we’ve seen from the company so far have pushed BTCS stock up more than 84% for the week and 59% for the month. BTCS may have started the year on a low note, but it is certainly making up for the loss and looks poised to continue rising even further.
Most of the stock’s impressive growth has transpired since the “bividend” initiative was announced. Today’s news is likely to help it rise even further. However, it’s clear that the public is fascinated by this company’s decision to venture into crypto markets in a new way. The news indicates that BTCS is eager to take this crypto-focused mentality even further.
Why It Matters
As Brenden Greeely of the Financial Times notes, “Behind the bividend is a bet that, if correct, could have much larger consequences.”
It certainly could, specifically if it proves successful. But the recent decision to add Algorand to its blockchain infrastructure could also have significant implications. It’s certainly not surprising that BTCS would want to include it. The crypto may be down right now, but its price predictions for the year are still red-hot — and for good reason. The Algorand blockchain has been selected by the Drone Racing League (DRL) and metaverse game developer Playground Labs to host a play-to-earn drone game, as InvestorPlace’s Shrey Dua reports.
The market is ripe for just such a gaming experience, one that will allow players to earn both crypto and non-fungible tokens (NFTs). The utility of Algorand as a crypto is still being touted, as is the rewards plan we saw it launch in the final days of 2021.
BTCS clearly recognizes the potential in this type of utility. As Chief Operating Officer Michal Handerhan states, “The ALGO Foundation proposed a roadmap going out as far as 2030 focusing on ecosystem support, community incentives and decentralized governance. We look forward to monitoring its developments over the years.”
What It Means
It’s not hard to see how the addition of Algorand to the BTCS blockchain infrastructure could serve to benefit both parties involved. The blockchain cryptocurrency protocol is highly scalable. Plus, Algorand’s user community is vast and continues to expand. It consists of companies in the financial and fintech sectors but also expands to government and public sector organizations.
If it continues to grow, and there’s no reason to expect that it won’t, BTCS stock can rise accordingly. The company is still riding the momentum generated by the bividend news. Therefore, the Algorand news comes at a good time as it will help keep the buzz going.
BTCS stock still trades at low price. If you’re looking into crypto stock plays, it should be on your radar.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.