Ethereum News Today: Shareholders Get Ethereum Payout to Outsmart Short Sellers

BTCS Inc. (Nasdaq: BTCS), a publicly traded company focused on blockchain technology and Ethereum operations, has announced a groundbreaking initiative by offering its shareholders the first-ever Ethereum-based dividend, known as a “Bividend.” The one-time payment of $0.05 per share will be issued in Ethereum (ETH) or cash, with eligible shareholders required to opt in by September 26, 2025, to receive the distribution in ETH [4]. This move marks a significant step in the integration of blockchain technology with traditional financial models, as the company seeks to reward its shareholders and align their interests with long-term value creation [1].

In addition to the Bividend, BTCS is offering a separate “Loyalty Payment” of $0.35 per share, also payable in ETH, to shareholders who hold their shares in book entry with the company’s transfer agent for at least 120 days. This incentive is designed to reduce the availability of shares for short selling, a practice that has been criticized by the company’s leadership for its potential to manipulate stock prices and harm long-term investors [2]. CEO Charles Allen emphasized that the loyalty payment aims to empower shareholders by limiting the ability of their shares to be lent to short sellers and to reinforce a more stable and resilient shareholder base [4].

The Bividend and loyalty payment together amount to $0.40 per share in ETH for eligible shareholders. Notably, officers, directors, employees, and holders of Series V Preferred shares are excluded from the loyalty payment. The company noted that this initiative is part of its broader strategy to protect shareholder value and promote a fairer market environment [1]. Shares of BTCS rose 7% following the announcement, as investors responded positively to the move, while other firms in the digital asset treasury sector experienced declines [2].

BTCS, which transitioned from a Bitcoin mining business to an Ethereum-focused strategy in 2021, currently holds over 70,000 ETH, valued at approximately $303 million as of August 12, 2025 [2]. This position places BTCS 11th in a growing field of Ethereum treasury firms, which have become a key driver of Ether’s price appreciation over recent months. The company has been utilizing DeFi and TradFi mechanisms, such as staking and borrowing on platforms like Aave, to optimize the use of its ETH holdings and generate additional value for shareholders [3].

The move also reflects a broader trend among Ethereum treasury firms, which are increasingly leveraging innovative financial strategies to maximize returns and support the growth of the Ethereum ecosystem. BTCS’s approach, including the Bividend and loyalty payment, is part of what it calls the “DeFi/TradFi ETH Accretion Flywheel,” a strategy that integrates blockchain infrastructure with capital formation to drive scalable revenue and long-term value [1]. By distributing dividends in Ethereum, the company is also aligning its payouts with the asset class that forms the core of its operations, potentially reinforcing investor confidence in its business model.

Shareholders are advised to consult with their tax advisors regarding the implications of receiving the distribution and the loyalty payment. The Bividend is subject to a record date of September 26, 2025, with the loyalty payment to be paid as soon as possible after January 26, 2026. The company has provided detailed instructions on how shareholders can opt into receiving the Bividend and the loyalty payment through its website and a Form 8-K filing with the SEC [4].

Source:

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

[2] title2 (https://www.coindesk.com/business/2025/08/18/btcs-to-pay-first-ever-ether-dividend-loyalty-bonus-to-discourage-short-selling)

[3] title3 (https://cointelegraph.com/news/btcs-inc-pay-ethereum-dividend-loyalty-payment)

[4] title4 (https://www.morningstar.com/news/globe-newswire/9513644/btcs-offers-shareholders-a-005-per-share-bividend-a-blockchain-dividend-payable-in-ethereum)