- BTCS will pay a dividend and loyalty bonus in Ethereum to reward long-term shareholders.
- The ETH dividend move helps limit short selling by reducing available shares for lending.
- BTCS aims to close the gap between its market value and its large Ethereum holdings.
BTCS Inc., a Nasdaq-listed Ethereum treasury firm, will issue a dividend in Ethereum (ETH) and a loyalty payment. The company will distribute a total of $0.40 per share in ETH. This includes a $0.05 dividend and a $0.35 loyalty reward.
The ETH dividend will be paid on September 26. Shareholders must hold their shares through the company’s transfer agent to qualify. The loyalty payment will go to those who maintain their shares from September 26, 2025, to January 26, 2026. BTCS clarified that officers, directors, and employees are excluded from this reward.
This marks the first time a publicly traded company will issue a dividend in Ethereum. BTCS aims to offer incentives to long-term investors. It also seeks to reduce the number of shares available for short-selling. Shares moved to the transfer agent cannot be lent out, limiting short-selling activity.
Market Reacts to Crypto Dividend Strategy
BTCS shares increased 10.4% following the announcement, reaching $4.87. The company had previously peaked at $6.57 in July. With a current market cap of $233 million, BTCS is trading below its net asset value. The firm holds 70,140 ETH, valued at over $300 million.
This gap between asset value and market price is one reason behind the dividend move. BTCS hopes to realign its share price with its crypto holdings. The ETH payments are expected to improve investor engagement while stabilizing share value.
Position in ETH Treasury Rankings
BTCS ranks 11th among Ethereum treasury firms. It holds less ETH than leaders like Bitmine Immersion Tech and SharpLink Gaming. These firms hold 1.5 million and 728,800 ETH, respectively. Still, BTCS has seen steady growth in its ETH reserves over recent months.
The company has been active in decentralized finance since 2022. It has used strategies like staking and borrowing on Aave. More recently, it began raising funds through equity offerings and convertible notes to buy ETH. Recently, the firm also filed with the SEC to raise up to $2 billion to expand Ethereum holdings and scale its staking operations.
Crypto and Equity Markets Continue to Blend
BTCS’s decision highlights the growing overlap between crypto and public markets. Ethereum’s price has surged from $1,465 to $4,775 in four months. This rally is partly driven by treasury firms acquiring large amounts of ETH.
By offering dividends in ETH, BTCS strengthens its position in a crowded market of Ethereum holders. The loyalty structure could attract retail investors seeking long-term value. At the same time, it acts as a measure against short-term volatility and short-selling practices.
