BTCS to Pay First-Ever Ether Dividend, Loyalty Bonus to Discourage Short Selling

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BTCS Inc. (BTCS), a Nasdaq-listed crypto strategy firm focused on Ethereum, will distribute a first-of-its-kind ether (ETH) dividend to shareholders, the company said on Monday.

The one-time payout, dubbed "Bividend," amounts to $0.05 per share and can be received either in ETH or cash, the company said in a release. Eligible shareholders must opt in by Sept. 26, the record date for the payout.

BTCS is also offering a $0.35 per share "loyalty payment" in ETH to shareholders who transfer their holdings into book entry with the company’s transfer agent and keep them there through January 26, 2026.

With this step, the firm aims to reward long-term investors and discourage short selling, making it harder for shares to be borrowed for short sales, the company said. A short sale is a bet on the share price falling and revolves around the sale and subsequent repurchase of borrowed stock.

"By rewarding shareholders who hold at our transfer agent, we block predatory short sellers, cut manipulation, and build a stronger base," CEO Charles Allen said in an X post. "Short sellers are betting we’ll dilute. Our loyalty program fights back."

He pointed out a disconnect between the company’s balance sheet value of about $6.65 per share in cash and digital assets holdings versus the stock's market price below $5.

BTCS rose 7% in the early hours of the session to $4.71, while other digital asset treasury companies like BitMine (BMNR) and SharpLink (SBET) declined.

BTCS pivoted to an ether-focused digital asset strategy in 2021, well before the recent wave of firms appeared on the market. It held over 70,000 ETH as of Aug. 12, according to the firm's website, now worth roughly $300 million.

Read more: BitMine Immersion's Ether Holdings Top $6.6B, Stock Slides 7% Alongside ETH's Tumble


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