BTCS: Best Crypto Stock For Dividend Growth Investors (NASDAQ:BTCS)

BTCS (NASDAQ:BTCS) is a micro-cap crypto blockchain stock that I recently added to my portfolio in 2022 as a wonderful play on the growing cryptocurrency industry.

Dividend growth investors seek income from their positions but crypto and blockchain stocks provide very few options for steady passive income.

Thanks to BTCS, dividend bugs have the option to receive yield from their shares without needing to sell covered calls.

Crypto is a new and exciting industry with exponential growth potential that we haven’t witnessed since the dawn of the internet.

The total crypto addressable market cap sits at $1.6 trillion market cap. In comparison, Apple’s (NASDAQ:AAPL) $2.6 trillion market cap dwarfs the entire crypto industry alone so don’t think it’s too late to get involved in crypto.

In this article, I’ll share with you why I’m so bullish on BTCS stock despite a short term price correction in crypto assets such as Bitcoin.

BTCS Made History with the First-Ever “Bividend”

BTCS is a small crypto blockchain company based out of Silver Spring, MD with a keen focus on generating revenue through staking and portfolio analytics tracking.

BTCS caught my attention when the company made history becoming the first publicly listed company to pay a “Bividend” (Bitcoin dividend) to its shareholders.

Shareholders on record before March 17, 2022 will receive 5 cents per share as a regular dividend or Bitcoin dividend if you transfer your shares to BTCS’s transfer agent and provide your personal BTC wallet address.

This is historic news because we have never witnessed any company pay out income to shareholders in any currency other than US Dollars. With this move alone, Bitcoin officially becomes currency on Wall Street and I expect many more companies to follow suit in 2022 and beyond.

BTCS Owns a Massive Crypto Portfolio

BTCS generated $1.2 million in 2021 revenue and grew its crypto portfolio from $4.15 million in Q4 2020 to $36.4 million in Q4 2021.

The company generates revenue mainly through staking cryptocurrencies to their respective blockchain. Proof of Stake cryptocurrencies reward stakeholders with payout yield (similar to a dividend from dividend-paying stocks) as a reward for securing the network.

It’s important to note that the total portfolio has changed due to falling cryptocurrency prices.

Here’s a quick breakdown of the portfolio along with the current market value of each crypto asset in today’s prices (as of January 26th, 2022).

BTCS stock trades at a $50+ million market cap so you’re paying about 2x times the underlying portfolio value.

BTCS holds $658,000 in fiat US Dollars on its balance sheet. Crypto companies prefer keeping the majority of their assets in crypto instead of government-issued money. Crypto can be converted into cash 24/7 365.

Do not underestimate the power of such a vast and sizeable cryptocurrency portfolio. $24 million is a huge crypto portfolio when you think about just how early we are in the crypto adoption cycle.

Cryptoslate predicts over 1 billion users will hold crypto by 2027 so it’s best to get in as early as possible.

BTCS shareholders have rights to a massive portfolio that could easily 10 to 100x in the next few years as cryptocurrency adoption picks up speed.

Cryptocurrency adoption is closely following the same path as the Internet did in the 90’s. There is no way I could imagine how much the internet changed since using my Dad’s AOL dial-up connection 20+ years ago.

We will see the same changes in crypto and blockchain products. It will be excited to watch the evolution of crypto over the next 5 years.

Buckle up, folks.

Upcoming Portfolio Analytics Tracker Could Increase Revenue

BTCS is launching a portfolio analytics platform similar to Cointracker.io as a way to diversify revenue away from staking.

The Analytics platform allows crypto investors to track their performance from hundreds of different cryptocurrencies.

If BTCS uses the same business model as Cointracker.io then they have the potential to build out a massive potential revenue source.

Cointracker.io offers a freemium plan with a paid subscription upgrade so it will be interesting to see how BTCS plans to monetize its tracking platform.

Control a Crypto Portfolio Without Managing It Yourself

Many newbie crypto investors are cautious about holding crypto due to the uncertainty of the industry. Crypto is not regulated by the government or FDIC so your assets are lost when there is a hack or security breach nearly 100% of the time.

BTCS is a wonderful mix of Proof of Work assets like Bitcoin (BTC-USD) along with a plethora of Proof of Stake coins that generate yield.

Historically, cryptocurrencies such as Bitcoin have outperformed all other asset classes by a wide margin over the last 10 years.

BTCS provide solid crypto exposure to new investors to crypto are too afraid to take the plunge.

Why not invest in BTCS and gain crypto exposure without any hassles?

While I hold several cryptocurrencies such as Bitcoin and Litecoin (LTC-USD), I also plan to HODL BTCS shares over the next few years as well.

Risk Factors: A Crypto Bear Market and Potential Crypto Theft

Crypto is as volatile as any asset class I’ve ever seen and it’s not unusual for some coins to lose over 50% of their value within days.

You must learn to control your emotions when investing in crypto because the volatility can be too much for beginners to handle.

A crypto bear market will crush the stock price of BTCS so be prepared for wide price swings along the way.

Another potential risk factor is a security breach or third-party hack. Crypto is unregulated and thieves are notorious for stealing coins and getting away with them.

Hackers are everywhere and even Crypto.com lost $30 million to hackers just months after purchasing the naming rights to the Los Angeles Lakers arena for $700 million.

I believe the government and FDIC will find new innovative ways to track cryptocurrency theft in the future but it’s just too early in the game at the moment.

A BTCS hack would be devastating and I wouldn’t be surprised to watch BTCS shares plummet on any bad press release news.

Conclusion

BTCS is a tiny micro-cap stock with lots of upside if crypto continues growing into worldwide adoption.

Bitcoin is closely related to the price of BTCS stock so it’s best to buy when BTC and other crypto assets are lower in price.

Right now, the Crypto Greed and Fear index sits at 24 indicating “Extreme Fear” in the crypto markets.

That’s why I recently added to my BTCS position and will continue to do so leading up to the March 17th, 2022 dividend cutoff date.

If you’re looking for a large-cap crypto play then take a look at Coinbase (NASDAQ:COIN) since COIN stock is closely related to crypto prices as well.

Every investor should have at least 5% exposure to cryptocurrency because blockchain technology is the future of commerce and will become mainstream in the upcoming years.

I’m bullish on BTCS and will be excited to watch the company grow over time.