Ethereum News Today: BTCS Issues First-Ever Ethereum Dividend and Loyalty Payment to Discourage Short Selling

BTCS Inc. (Nasdaq: BTCS), an Ethereum (ETH) treasury firm, has announced a unique strategy to issue a one-time dividend and loyalty payment in ETH, aiming to reduce exposure to “predatory short-sellers” and reward long-term shareholders [1]. This $0.40 per share payout—comprising a $0.05 “Bividend” and a $0.35 “Loyalty Payment”—marks the first time a publicly traded company will distribute dividends in ETH [2]. The initiative reflects BTCS’s broader effort to align shareholder incentives with its Ethereum-focused operations and strengthen governance over its shares [3].

The Bividend, which will be distributed on September 26, 2025, is available to all shareholders who opt in and elect to receive the payment in ETH [4]. Shareholders who do not opt for the Ethereum payout will receive $0.05 in cash. Meanwhile, the loyalty payment of $0.35 per share will be issued to shareholders who transfer their shares to book entry with the company’s transfer agent and hold them until January 26, 2026 [5]. Officers, directors, employees, and holders of Series V Preferred shares are excluded from the loyalty payment [6].

This move is intended to limit the availability of freely tradable shares that can be borrowed for shorting, thereby reducing the risk of market manipulation and stabilizing the company’s stock price [7]. BTCS has previously leveraged decentralized finance mechanisms, such as borrowing on Aave and staking, to grow its Ethereum holdings. In recent months, it has aggressively expanded its ETH treasury to strengthen its position in a competitive field of 69 similar firms [8].

Currently, BTCS holds 70,000 ETH, valued at over $303 million, placing it 11th in the ranking of entities with the largest ETH holdings according to StrategicETHReserve [9]. Competitors such as Bitmine Immersion Tech and SharpLink Gaming hold significantly larger positions, with 1.5 million ETH and 728,800 ETH, respectively. Despite its mid-tier status, BTCS has demonstrated a consistent strategy of acquiring ETH through equity offerings and convertible notes, similar to its peers [10].

The company’s share price has been volatile in recent months. On the day of the announcement, BTCS shares rose 10.4% to $4.87, following a drop from a 2025 high of $6.57 on July 18 [11]. The company’s market cap now stands at $233 million. The disparity between its current share price and the $6.65 per share in cash and digital assets it holds has been cited as a key motivator for the Ethereum-based payout [12].

The loyalty payment initiative also builds on BTCS’s previous experience with cryptocurrency dividends. In 2022, the company distributed a Bitcoin dividend to its shareholders [13]. This latest move reinforces the firm’s reputation for innovation in shareholder value creation and transparency.

Shareholders who wish to participate must complete the opt-in process and transfer their shares by the record date [14]. The company has provided detailed information on its website, bividend.com, and has filed a Form 8-K with the SEC to ensure compliance and full transparency [15]. The press release also includes forward-looking statements, which are subject to change based on market conditions and new information [16].

The company advises shareholders to consult with tax professionals to understand the implications of receiving the Bividend and loyalty payment [17]. As the first public company to issue an Ethereum dividend, BTCS is setting a precedent in the intersection of traditional finance and blockchain, potentially influencing how equity-based rewards are structured in the digital asset space [18].

Source:

[1] https://www.coindesk.com/business/2025/08/18/btcs-to-pay-first-ever-ether-dividend-loyalty-bonus-to-discourage-short-selling

[2] https://cointelegraph.com/news/btcs-inc-pay-ethereum-dividend-loyalty-payment

[3] https://www.morningstar.com/news/globe-newswire/9513644/btcs-offers-shareholders-a-005-per-share-bividend-a-blockchain-dividend-payable-in-ethereum

[4] https://www.globenewswire.com/news-release/2025/08/18/3134896/0/en/BTCS-Offers-Shareholders-a-0-05-per-share-Bividend-a-Blockchain-Dividend-Payable-in-Ethereum.html

[5] https://www.quiverquant.com/news/BTCS+Inc.+Announces+First-Ever+Ethereum+Dividend+and+Loyalty+Payment+for+Shareholders

[8] https://coinmarketcap.com/community/articles/68a3c42f799f21195a47cd6c/