BTCS Inc., a company known for managing its treasury in Ethereum, is shaking things up for its shareholders. They just announced a special dividend payment. This isn’t your usual cash or stock payout. This time, shareholders will get paid directly in Ethereum, or ETH. It’s one of the first times a public company has tried to give dividends out in cryptocurrency.
This clever move aims to stop people from selling their shares too quickly. It’s a direct thank-you to investors for sticking with the company. BTCS plans to offer a “Bividend” of $0.05 per share. On top of that, they’re adding a special loyalty payment of $0.35 per share. Both payments will come in ETH. To get the loyalty bonus, shareholders need to move their stock to the company’s transfer agent and keep it there for at least 120 days.
A Shield Against Short Sellers
The company hopes this loyalty payment will cut down on “short selling.” That’s when investors borrow shares to sell them, hoping to buy them back cheaper later. If shares stay with the transfer agent, fewer are available for lending. This makes it harder for short sellers to bet against BTCS.
Charles Allen, the CEO of BTCS, explained the strategy. He said the goal is to protect long-term shareholders. “We’re paying the Bividend and loyalty payment to thank those who trust the company,” Allen stated. “We want to help them protect their investment.” He added that this prevents shares from being lent to short sellers. This, in turn, helps guard against market manipulation.
Allen also mentioned that short sellers are betting BTCS will issue more shares to raise money. But he made his stance clear: “As the largest shareholder of BTCS, I want to say my aim is to grow our market value mainly by increasing the stock price, not by watering down the shares.”
Ethereum Treasury Trend
BTCS is part of a growing trend. Many companies are now using Ethereum for their treasury strategies. They’ve raised tens of billions of dollars through debt and equity. A lot of these firms started with small stock volumes. Their value shot up after they announced these crypto-based strategies.
However, this sector might be hitting a rough patch. SharpLink, which has the second-largest Ethereum treasury, recently saw its stock, SBET, fall by 10%. It’s now trading around $20, a big drop from its yearly high of $79.39. For BTCS, about 7.3% of its available shares are being “shorted,” according to Yahoo Finance. This is a moderate level of negative bets, especially when you consider that a stock is heavily shorted if this number goes over 20%.
A Pioneer in Crypto Dividends
BTCS isn’t new to this game. It’s known as the first company in the United States to pay a dividend in crypto. In 2022, its stock jumped more than 40% after it announced its first dividend paid in Bitcoin or cash.
The company was founded in 2014. It’s one of the first Blockchain companies to list on stock markets. BTCS stock has climbed almost 70% so far in 2025, trading around $4.40. This rise comes from new interest in companies holding crypto treasuries. Besides its investment approach, BTCS also runs services that make money. These include Builder+ (a block-builder), NodeOps (a validator solution), and ChainQ (an analysis platform).
Despite its stock gains, BTCS reported a net loss of $13.39 million over the last six months. The company said this was due to big investments in Builder+. They also had $5.74 million in depreciation losses. Plus, they lost $4.16 million after selling some crypto assets that weren’t Ethereum.
The story of BTCS shows how traditional finance and cryptocurrencies are mixing. Publicly traded companies are trying out dividends paid in digital assets. At the same time, they face tough market ups and downs and pressure from investors betting against them.
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