What is the Series V Preferred stock?
The Series V Preferred stock is intended to be similar in some respects and superior in others to our common stock. Its key features are: i) its non-convertible, ii) perpetual, iii) has a 20% liquidation preference over our common stock, iv) eligible, at the discretion of the board, for dividends and/or distributions made to common holders, v) eligible, at the discretion of the board for, dividends and/or distributions up to 20% per annum, which the common shareholders would not be entitled to, vi) will be treated as common stock in the event of a reorganization such as a merger, and vii) non-voting.
Why is BTCS distributing Series V to its shareholders?
BTCS is distributing Series V Shares to all its shareholders as a step towards protecting investors, embracing blockchain technology for trade settlements, and rewarding long-time shareholders for their continued support. This distribution aims to build a fundamental shareholder base, promote blockchain adoption, and create a pathway for every shareholder to seamlessly utilize blockchain technology in their daily lives.
BTCS intends to list the Series V Shares on Upstream, which utilizes Ethereum’s blockchain that BTCS has been securing through its validator node operations since 2021.
The Upstream listing is expected to provide transparent public order books, grant access to a global digital-first investor base, enable direct-to-investor communications, distributions, and dividends without friction, and eliminate: i) failures to deliver, ii) illegal naked shorting, and iii) phantom shares which we believe currently plague the market.
This move demonstrates BTCS’s commitment to delivering superior value to investors, acknowledging the loyalty of long-time shareholders, fostering innovation, and contributing to the potential future of fairer capital markets.
Is this Series V Dividend distribution dilutive to stockholders?
No. This is a pro-rata stock distribution of Series V Shares to common stockholders. The number of shares of common stock outstanding remains unchanged as a result of this distribution.