BTCS will pay up to $0.40 per share in Ethereum to reward holders and counter short-seller activity.
Public blockchain infrastructure company BTCS Inc. said it will distribute a one-time dividend in ETH or cash, along with a separate loyalty payment, to holders who lock up their shares until next year. The firm’s CEO described the reward program as a defense against “predatory short sellers.”
BTCS CEO Charles Allen said in a Monday post on X that the company will pay $0.05 per share in ETH in what the firm is calling a one-time “Bividend” — a “blockchain dividend” — to all holders of common stock and Series V preferred stock. Shareholders who keep their common shares at BTCS’ transfer agent, Equity Stock Transfer, through Jan. 26, 2026, will receive an additional $0.35 per share in ETH, the company said.
Holders who want to receive their dividends in ETH can receive it on “any valid Ethereum wallet address,” the firm clarified on its website. Investors who don’t opt in will receive the $0.05 in cash and won’t qualify for the loyalty payment.
In a commentary to The Defiant, Allen said that this is a “special one-time distribution,” noting that the company made a similar dividend payment in BTC back in 2022.
BTCS is the eleventh-largest ETH treasury company, holding around 70,000 ETH, or 0.06% of ETH supply, per data from Strategic ETH Reserve.
Fighting Shorters Back
By having shareholders keep their shares at the transfer agent, the company seems to be limiting market liquidity, which could make it harder for short sellers to borrow shares.
As of July 31, about 2.99 million shares were sold short, representing 10.4% of the float, a 35% increase from June, according to MarketBeat data.
Allen, the largest shareholder of BTCS, said in the X post that the strategy is to “block predatory short sellers, cut manipulation, and build a stronger base,” adding that “short sellers are betting we’ll dilute” and that with the loyalty program, BTCS “fights back.”
BTCS shares jumped 10.4% after the announcement, closing at $4.87 on Monday, though the stock is down over 14% today and 32% in the past month.
BTCS shares remain up 59% since the start of the year, according to Google Finance, though the stock is still trading below the value of its crypto holdings.
The company holds around $300 million in ETH, while its market cap is around $234 million, giving it a market NAV of 0.75, meaning the shares trade at 75% of their net asset value.
Source: https://thedefiant.io/news/tradfi-and-fintech/ethereum-treasury-firm-btcs-to-pay-dividends-in-eth-to-stop-predatory-short-sellers
