Ethereum News Today: BTCS Pays First-Ever Ethereum Dividend to Discourage Short-Selling

BTCS Inc. has announced a groundbreaking initiative to issue a one-time dividend and loyalty payment in Ethereum (ETH) to shareholders, marking the first time a publicly traded company has distributed a dividend in the cryptocurrency [1]. This strategic move is intended to reward long-term shareholders and reduce the availability of shares that could be borrowed for short-selling. The firm explained that these payments would empower shareholders by limiting the ability of their shares to be lent to short-sellers [2].

The dual payment structure includes a $0.05 per share “Bividend,” payable in ETH or cash, and a $0.35 per share loyalty payment in ETH, available to those who hold their shares for at least 120 days and transfer them to the company’s transfer agent [3]. The Bividend is set to be distributed on September 26, while the loyalty payment is scheduled for after January 26, 2026 [4]. The loyalty payment is exclusive to shareholders, excluding officers, directors, and employees.

This initiative aligns with BTCS’s broader strategy of leveraging decentralized finance (DeFi) and staking to grow its Ethereum holdings [5]. The company has been actively accumulating ETH over the past few months, positioning itself in the competitive field of Ethereum treasury firms. As of the latest data, BTCS holds 70,000 ETH, placing it 11th among entities competing to build the largest ETH reserves [6].

The stock price of BTCS rose 10.4% on the news, reaching $4.87 on the day of the announcement [7]. Despite this upward movement, the company’s share price of $4.41 as of August 15, 2025, remains lower than the $6.65 per share in cash and digital assets it holds, creating a potential undervaluation [8]. The timing of the Bividend and loyalty payment aims to bridge this gap and reward loyal shareholders who support the company’s long-term vision.

BTCS previously issued a Bitcoin dividend in 2022 and is now the first public company to distribute a dividend in Ethereum. The company’s approach of integrating DeFi and traditional finance mechanisms with its blockchain infrastructure operations is central to its strategy for scalable ETH accumulation and yield generation [9]. The loyalty payment is designed to reward those who continue to support this vision and to mitigate the risk of short-selling.

Shareholders are advised to consult with tax professionals regarding the implications of receiving these payments. The full details of the distribution are available on bividend.com and disclosed in a Form 8-K filed with the U.S. Securities and Exchange Commission on August 18, 2025 [10].

Sources:

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

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

[3] GlobeNewswire (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)

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

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

[6] StrategicETHReserve (https://strategicethreserve.xyz/)

[7] Google Finance (https://www.google.com/finance)

[8] Cryptopolitan (https://www.cryptopolitan.com/btcs-to-pay-out-on-chain-dividend-in-eth/)

[9] TodayOnChain.com (https://www.todayonchain.com/news/article/01K2YWY516AS36JDMX8HXJ1FST/)

[10] Holder.io (https://holder.io/news/btcs-ether-dividend-loyalty-payment/)