Ethereum News Today: BTCS Rewards Investors with Ethereum Payouts to Fight Short Sellers

BTCS Inc., a Nasdaq-listed firm focused on Ethereum (ETH), is set to make history by distributing a first-of-its-kind ether dividend to its shareholders. The dividend, known as the “Bividend,” will be worth $0.05 per share and can be received in either ETH or cash. The payout is scheduled for September 26, 2025, and will be followed by a $0.35 per share “Loyalty Payment” in ETH on January 26, 2026, for shareholders who maintain their positions for the duration of the 120-day holding period [3]. This initiative aims to reward long-term investors and reduce the availability of shares for short selling, a strategy that CEO Charles Allen described as a means to combat “predatory short-sellers” and strengthen the company’s investor base [3].

BTCS has been accumulating ETH since 2021 and currently holds approximately 70,140 ETH, valued at around $300 million as of August 12, 2025. The company has leveraged decentralized finance (DeFi) and traditional finance (TradFi) mechanisms to grow its holdings through staking and borrowing platforms such as Aave. BTCS has also funded its ETH accumulation through at-the-market equity offerings and convertible notes, similar to strategies used by its peers in the growing Ethereum treasury sector [4]. The company’s vertically integrated operations include block building, validator node operations, and staking infrastructure, which form the core of its DeFi/TradFi ETH Accretion Flywheel model [1].

The move is seen as a strategic effort to align shareholder incentives with the long-term value of the company’s ETH holdings. By tying shareholder rewards directly to Ethereum, BTCS is reinforcing its Ethereum-first strategy and potentially differentiating itself from other ETH treasury firms. The firm is currently ranked 11th among the largest Ethereum treasury holders, trailing behind companies like BitMine Immersion Tech and SharpLink Gaming, which hold over 1.5 million and 728,800 ETH, respectively [4]. The loyalty payment is particularly noteworthy because it discourages short-term trading and reduces the number of shares available for lending, which could help stabilize the stock price and reduce volatility driven by speculative shorting activity [5].

The announcement has already had a positive impact on BTCS’s stock price, which rose by 7% to $4.71 following the news. In contrast, other digital asset treasury stocks such as BitMine (BMNR) and SharpLink (SBET) experienced declines. This divergence highlights the market’s mixed reaction to the move, with some investors viewing the ETH-based payout as innovative while others remain cautious about the company’s ability to sustain its ETH accumulation strategy [3]. The firm’s broader Ethereum-focused growth strategy includes validator infrastructure, staking services, and blockchain software development, which are expected to drive further scalability and value creation over time [5].

Regulatory considerations are also a key factor in this initiative. Crypto dividends are classified as property distributions, making them taxable events for shareholders based on the fair market value of ETH at the time of receipt. This framework was previously used during BTCS’s 2022 Bitcoin-based “Bividend” program, where shareholders received $0.05 per share in Bitcoin. The 2025 Ethereum-based payout expands on this model by introducing a split payment structure and a loyalty incentive, thereby enhancing the complexity and sophistication of the company’s capital return strategy [5].

The move reflects a broader trend of corporate adoption of digital assets for shareholder returns. While BTCS is relatively small in market capitalization, its repeated use of crypto-based dividends demonstrates the feasibility of such strategies and may encourage further innovation in the space. The expanded Ethereum program introduces a more structured approach to shareholder rewards, aligning with the company’s long-term vision of leveraging blockchain technology to drive scalable growth and value creation for investors [5].

Source:

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

[2] BTCS Stock Quote Price and Forecast (https://www.cnn.com/markets/stocks/BTCS)

[3] 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)

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

[5] BTCS hands out $0.40 per share in Ethereum dividend and... (https://cryptoslate.com/btcs-hands-out-0-40-per-share-in-ethereum-dividend-and-its-stock-jumps-10-percent/)