Ethereum News Today: BTCS Uses ETH Dividend to Reward Investors, Fight Shorts

BTCS Inc., a publicly traded Ethereum treasury firm, has announced a $0.40 per share dividend in Ether (ETH) to be distributed among its shareholders as part of a broader strategy to reduce the risk of predatory short-selling and reward long-term investors. The initiative, the first of its kind for a publicly traded firm issuing a dividend in a digital asset, includes two components: a one-time "Bividend" of $0.05 per share and a "Loyalty Payment" of $0.35 per share [2]. The Bividend will be paid out on September 26, while the Loyalty Payment will be issued to shareholders who hold their shares until January 26, 2026, excluding officers, directors, and employees [2].

The move is part of BTCS’s broader DeFi/TradFi ETH Accretion Flywheel strategy, which aims to maximize ETH holdings through a combination of validator node operations, staking infrastructure, and decentralized finance (DeFi) tools such as borrowing on Aave [1]. As of August 12, 2025, BTCS holds 70,140 ETH, valued at $4,272 per ETH, amounting to approximately $303 million in Ethereum holdings [1]. The firm has been leveraging at-the-market equity offerings and convertible notes to fund further ETH accumulation, a strategy it shares with other treasury companies in the competitive ETH ecosystem [2].

Ethereum treasury firms have played a significant role in ETH’s price performance over the past four months, as the price has surged from around $1,465 to $4,775 [2]. BTCS, which transitioned from a Bitcoin mining operation to an Ethereum-focused entity, is now vying for a top 10 position in the race to accumulate the largest ETH holdings. Currently ranked 11th, BTCS trails leaders Bitmine Immersion Tech and SharpLink Gaming, who hold 1.5 million ETH and 728,800 ETH, respectively [2]. The firm’s market cap as of the latest data stood at $233 million, with its shares rising 10.4% to $4.87 following the announcement [2].

The dividend initiative appears to have been well-received by the market, with BTCS shares partially recovering from a peak of $6.57 reached on July 18 [2]. Analysts suggest that the firm’s move to reward shareholders in ETH aligns with its broader mission of integrating blockchain infrastructure with scalable revenue generation [1]. The strategic use of Ethereum in both traditional and decentralized finance contexts is a key component of BTCS’s value proposition.

BTCS has also emphasized its commitment to innovation and strategic partnerships, including its NodeOps validator node and staking infrastructure and its Builder+ high-performance Ethereum block-building platform [1]. These operations are central to its strategy of expanding into high-impact business lines that amplify its blockchain infrastructure. The firm is also promoting a new Staker Protection Plan as part of its efforts to enhance shareholder value and strengthen its position in the blockchain ecosystem [1].

Source:

[1] BTCS Inc. – Advanced Blockchain Operations (https://www.btcs.com/)

[2] BTCS to pay out loyalty in ETH to deter 'predatory short-... (https://cointelegraph.com/news/btcs-inc-pay-ethereum-dividend-loyalty-payment)