Ethereum News Today: BTCS Pioneers ETH Dividends to Align Investors, Curb Short Selling

BTCS Inc. (Nasdaq: BTCS), a publicly traded company focused on Ethereum operations, has become the first publicly listed firm to distribute dividends in Ethereum (ETH). The company announced a one-time blockchain dividend, termed the “Bividend,” offering $0.05 per share in ETH or cash. The dividend is set to be distributed on September 26, and eligible shareholders must opt in by the record date. In addition, BTCS introduced a $0.35 per share “Loyalty Payment,” also in ETH, for investors who transfer their shares into book entry with the company’s transfer agent and hold them through January 26, 2026 [2].

The combined payments amount to $0.40 per share in ETH for participating shareholders. This initiative is designed to reward long-term investors and discourage short selling. CEO Charles Allen emphasized the strategy's goal of addressing the disparity between the company’s asset value and its current stock price. The company noted that its balance sheet holds approximately $6.65 per share in cash and digital assets, significantly higher than the stock price, which has been below $5 [2].

BTCS aims to strengthen investor alignment and reduce the risk of shares being lent to short-sellers, a move it claims will curb manipulation. Allen highlighted that the initiative aligns with BTCS’s broader strategy of leveraging Ethereum to generate scalable revenue and long-term value for shareholders. The company stated this is not merely a financial incentive but also a strategic step to build a stronger shareholder base [4].

In response to the announcement, BTCS shares rose 10.4% on the day of the release, reaching $4.87. The stock has partially recovered from a July peak of $6.57 and now commands a market capitalization of $233 million [3]. The firm’s Ethereum holdings as of August 12 stood at 70,140 ETH, valued at approximately $300 million based on the $4,272 price per ETH [1]. These holdings position BTCS at the 11th largest among 69 Ethereum treasury companies, as tracked by StrategicETHReserve.

BTCS’s strategy includes the integration of DeFi and TradFi operations to maximize Ethereum accumulation and optimize returns. The company utilizes high-performance Ethereum block building and validator node operations to expand its influence in the blockchain space. The recent move to issue Ethereum-based dividends underscores BTCS’s commitment to blockchain innovation and its broader mission of redefining shareholder value through digital assets [1].

The broader implications of BTCS’s initiative could extend beyond the company itself. If widely adopted, such practices may encourage more publicly traded firms to explore blockchain-based dividends. The potential for Ethereum to serve as a settlement asset in corporate finance could expand further, particularly as digital asset adoption increases. BTCS’s move is seen as a significant milestone in the convergence of traditional finance and blockchain technology [4].

Source:

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

[2] Ether Treasury News: BTCS Gains 7% on ETH Dividend, ... (https://www.coindesk.com/business/2025/08/18/btcs-to-pay-first-ever-ether-dividend-loyalty-bonus-to-discourage-short-selling)

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

[4] BTCS Becomes First Public Company to Pay Dividends in ... (https://cryptodnes.bg/en/btcs-becomes-first-public-company-to-pay-dividends-in-ethereum/)