BTCS to Pay $0.40 per Share in Ethereum to Reward Loyalty and Curb Short-Sellers
BTCS Inc. has announced a groundbreaking initiative to reward shareholders with Ethereum while discouraging predatory short-selling. The company will distribute a combined $0.40 per share in ETH through a one-time dividend and a loyalty payment, marking the first time a public company has offered dividends in Ethereum.
Under the plan, shareholders can receive a $0.05 per share dividend in Ethereum or cash if preferred. The record date for this dividend is set for September 26, 2025.
In addition, BTCS is offering a $0.35 per share loyalty payment in Ethereum for investors who transfer and hold their shares in book-entry form with the company’s transfer agent through January 26, 2026. The loyalty bonus is designed to incentivize long-term holding and reduce the number of shares available for lending to short-sellers. The program excludes company officers, directors, employees, and certain preferred shareholders.
BTCS CEO Charles Allen explained that the move is aimed at strengthening the company’s shareholder base while countering market manipulation by short-sellers. He pointed out that the company’s shares are trading below their intrinsic value, despite significant cash reserves and digital asset holdings. By rewarding investors willing to hold, Allen believes BTCS can reduce downward pressure on its stock while reinforcing shareholder confidence.
The market responded positively to the announcement, with BTCS shares climbing between 7% and 10% on the day of the news. Even with this surge, the stock price remains below its recent highs earlier in the year, underscoring the company’s determination to unlock greater value for investors.
Ethereum has become central to BTCS’s corporate strategy. The firm has steadily built a significant ETH treasury as part of its broader vision of aligning with decentralized finance. Its holdings now amount to tens of thousands of ETH, positioning BTCS among the larger corporate Ethereum treasuries globally. By using Ethereum directly in shareholder rewards, the company is further integrating blockchain technology into its financial operations.
This is not the first time BTCS has pioneered blockchain-based shareholder benefits. In 2022, the company issued the world’s first Bitcoin dividend, which it branded a Bividend. The new Ethereum initiative builds on that reputation, further distinguishing BTCS as a leader in merging traditional finance with crypto innovation.
To participate, shareholders must opt into the program and ensure their shares are transferred into the required book-entry system before the record date. Those who qualify and maintain their positions through the loyalty period will receive their Ethereum rewards directly.
BTCS is taking a novel approach to shareholder engagement by combining immediate rewards with a long-term loyalty incentive. The initiative strengthens ties with investors, enhances the utility of its Ethereum treasury, and creates a unique defense mechanism against short-sellers.
With this move, BTCS makes history as the first company to pay dividends in Ethereum and sets a new precedent for how digital assets can be used to build shareholder value in the evolving financial landscape.
