Key Points:
- BTCS will offer a unique ether dividend to shareholders, giving them the choice of a $0.05 per share payout in ETH or cash.
- A $0.35 per share loyalty payment will also be available for those transferring shares into book entry with the company’s transfer agent for a minimum of 120 days.
- This initiative aims to reward committed shareholders and mitigate short selling, as CEO Charles Allen indicated a gap between the company’s asset worth and its stock price.
- After the announcement, BTCS shares increased by 7%, while other digital asset companies faced declines.
BTCS Inc. (BTCS), a Nasdaq-listed firm focusing on Ethereum, is set to introduce a pioneering ether (ETH) dividend to its shareholders. Referred to as the “Bividend,” this one-time payment is valued at $0.05 per share and can be claimed in either ETH or cash, according to the recent company announcement. Shareholders need to opt in by September 26, which marks the eligibility cutoff for receiving the payout.
Apart from this, BTCS will also provide a $0.35 per share loyalty bonus for shareholders who move their shares to book entry with the company’s transfer agent and maintain this status through January 26, 2026.
By implementing these measures, BTCS intends to incentivize long-term investors and hinder short selling practices, complicating the ability for brokers to borrow shares for shorting purposes. A process where traders sell borrowed stock, betting on a subsequent drop in prices, is termed a short sale.
“By rewarding shareholders who hold with our transfer agent, we counteract predatory short sellers, reduce market manipulation, and build a more robust shareholder base,” states Charles Allen, in an update on X. He emphasized the discrepancy between BTCS’s balance sheet value of about $6.65 per share and its current market price, which is below $5.
Following the announcement, BTCS’s stock climbed by 7% to $4.71, whereas other digital treasury companies like BitMine (BMNR) and SharpLink (SBET) experienced declines.
In 2021, the company shifted toward an ether-centered asset strategy, long before similar initiatives emerged in the industry. As of August 12, BTCS reported holding over 70,000 ETH, valued at roughly $300 million.
