- BTCS to Pay First-Ever Ether Dividend and Loyalty Bonus to Discourage Short Selling
- A $0.35 loyalty bonus will be paid to shareholders who hold stock in book entry for at least 120 days
- The move aims to reward long-term investors and combat short selling, with BTCS stock rising 7%
BTCS Inc. (BTCS), a Nasdaq-listed crypto strategy firm, has announced a groundbreaking move by distributing its first-ever Ether dividend to shareholders. This move is part of the company’s strategy to encourage long-term investment while discouraging short selling.
BTCS launches innovative Ether dividend to reward
The one-time “Bividend” will provide $0.05 per share to shareholders, who can choose to receive the payout in either Ethereum (ETH) or cash. Eligible shareholders must opt in by September 26, with the record date set for the payout.
In addition to the Ether dividend, BTCS is offering a $0.35 loyalty bonus for shareholders who transfer their holdings into book entry with the company’s transfer agent and maintain the position for at least 120 days. This initiative aims to build a stronger shareholder base and block short sellers, who profit by betting on a decline in stock prices.
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CEO Charles Allen highlights disconnect between stock price and asset value
CEO Charles Allen explained that the company is addressing a disconnect between BTCS’s balance sheet value currently estimated at $6.65 per share in cash and digital asset holdings and its current market price, which is trading below $5. He emphasized that the new program aims to reduce stock manipulation and strengthen the company’s market position.
Following the announcement, BTCS’s stock rose 7%, reaching $4.71, while other digital asset treasury companies, such as BitMine (BMNR) and SharpLink (SBET), saw declines. This move highlights BTCS’s continued focus on its Ether-driven strategy, which has seen the company hold over 70,000 ETH, valued at around $300 million as of August 12.
