BTCS Inc Becomes First Public Company to Pay Ethereum Dividend

Revolutionary ETH Dividend Strategy Targets Short-Sellers

BTCS Inc has made history by announcing the first-ever Ethereum dividend payment by a publicly traded company. The innovative move includes a total of $0.40 per share in ETH, combining both a dividend and loyalty payment designed to reward long-term shareholders while combating predatory short-selling activities.

Dual Payment Structure: Bividend and Loyalty Rewards

The company has structured its ETH payments into two distinct components to maximize shareholder value and retention.

September ETH Bividend Payment

BTCS will distribute its "Bividend" of $0.05 per share in Ethereum on September 26, 2025. This groundbreaking dividend payment marks the first time a publicly traded company has chosen to pay dividends in cryptocurrency rather than traditional fiat currency.

January 2026 Loyalty Payment

A larger loyalty payment of $0.35 per share will be distributed in ETH to shareholders who maintain their positions until January 26, 2026. This strategic approach incentivizes long-term holding while excluding company officers, directors, and employees from the loyalty component.

Strategic Anti-Short Selling Measures

BTCS management has explicitly stated that these payments serve dual purposes beyond traditional shareholder rewards. The ETH dividend structure is designed to empower shareholders by reducing the availability of shares for lending to short-sellers, particularly those engaged in predatory practices.

The innovative payment method creates complications for short-sellers who would need to provide equivalent ETH payments to share lenders, making short positions more expensive and complex to maintain.

Market Response and Share Performance

The announcement generated immediate positive market reaction, with BTCS shares surging 10.4% to $4.87 following the dividend announcement. This recovery represents progress toward the company's 2025 high of $6.57 reached on July 18.

The Nasdaq-listed company currently maintains a market capitalization of $233 million, reflecting investor confidence in its Ethereum treasury strategy.

Competitive Position in ETH Treasury Race

BTCS currently ranks 11th among Ethereum treasury companies with holdings of 70,000 ETH valued at over $303 million. The company trails industry leaders Bitmine Immersion Tech and SharpLink Gaming, which hold 1.5 million ETH and 728,800 ETH respectively.

The competitive landscape includes 69 ETH treasury entities all vying to accumulate the largest Ethereum holdings, creating intense competition in the sector.

DeFi Integration and Accumulation Strategy

Since 2022, BTCS has leveraged decentralized finance protocols, including borrowing on Aave and ETH staking, to optimize its treasury operations. However, the company's aggressive ETH accumulation strategy has intensified over recent months.

The acquisition funding has come through various mechanisms including at-the-market equity offerings and convertible note issuances, mirroring strategies employed by other successful ETH treasury companies.

Ethereum Market Impact and Catalyst Role

ETH treasury companies like BTCS have served as significant catalysts behind Ethereum's impressive price performance, contributing to the rally from approximately $1,465 to $4,775 over the past four months.

This institutional adoption and strategic accumulation by publicly traded companies continues to drive mainstream acceptance of Ethereum as a treasury asset.

Industry Precedent and Future Implications

BTCS's pioneering ETH dividend approach may establish a new precedent for how publicly traded companies can utilize cryptocurrency in shareholder reward programs while simultaneously implementing strategic defensive measures against short-selling.

The success of this initiative could inspire other ETH treasury companies to adopt similar dividend strategies, potentially creating a new standard for crypto-native shareholder rewards in the public markets.

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