Ethereum News Today: BTCS Arms Shareholders with Ethereum to Fight Short Sellers

BTCS Inc. (Nasdaq: BTCS), a blockchain technology-focused company, announced it is paying shareholders a one-time blockchain dividend, or “Bividend,” of $0.05 per share in Ethereum (ETH), marking the first instance of a public company distributing a dividend in ETH. This initiative is aimed at rewarding long-term shareholders and empowering them to protect their investments by reducing the ability of shares to be lent for short-selling purposes [1].

The Bividend is part of a broader strategy to reward shareholder loyalty and combat short selling. In addition to the one-time Bividend, BTCS is offering a $0.35 per share loyalty payment, also in ETH, to shareholders who transfer their shares into book entry with the company’s transfer agent and keep them there for at least 120 days. This combined payout of $0.40 per share in ETH is designed to align long-term shareholder interests with the company’s growth strategy while mitigating the influence of short sellers [2].

To qualify for the Bividend, shareholders must opt in by completing a form and transferring their shares to the transfer agent by the record date of September 26, 2025. Those who do not opt in will receive the $0.05 dividend in cash instead of ETH. The loyalty payment will be distributed in ETH after January 26, 2026, and is not available to officers, directors, employees, or holders of Series V Preferred shares [3].

BTCS emphasized that this move is intended to strengthen investor confidence and reduce market manipulation. CEO Charles Allen noted that short sellers are betting against the company due to expectations of dilution through capital raises. By offering the Bividend and loyalty payments, the company aims to shift the balance in favor of long-term shareholders and protect against predatory short-selling practices [4].

BTCS has been actively accumulating ETH and has adopted a hybrid strategy combining decentralized finance (DeFi) and traditional finance (TradFi) mechanisms to maximize its Ethereum holdings. As of August 15, 2025, the company held approximately 70,140 ETH, valued at around $296.94 million. Its operations include block building through Builder+ and validator node staking through NodeOps, which are central to its efforts to generate scalable revenue and compound ETH returns [5].

The announcement has been met with a positive market response, with BTCS shares rising 10.43% on Monday’s regular trading session. However, the stock slipped slightly in after-hours trading, potentially due to a decline in ETH’s price. Analysts note that BTCS is competing with other Ethereum treasury firms like Bitmine Immersion Technologies and SharpLink, all of whom are vying to become the largest public holders of ETH. Despite currently holding 11th place with 70,000 ETH, BTCS aims to strengthen its position through aggressive accumulation and strategic partnerships [4].

Source:

[1] title1 (https://www.btcs.com/)

[2] title2 (https://www.benzinga.com/crypto/cryptocurrency/25/08/47202474/btcs-stock-surges-10-as-company-launches-first-ever-blockchain-dividend-paying-shareholders-directly-in-ethereum)

[3] title3 (https://www.coindesk.com/business/2025/08/18/btcs-to-pay-first-ever-ether-dividend-loyalty-bonus-to-discourage-short-selling)

[4] title4 (https://cointelegraph.com/news/btcs-inc-pay-ethereum-dividend-loyalty-payment)

[5] title5 (https://www.morningstar.com/news/globe-newswire/9513644/btcs-offers-shareholders-a-005-per-share-bividend-a-blockchain-dividend-payable-in-ethereum)