BTCS Inc. Announces One-Time Ether Dividend
BTCS Inc., an Ethereum treasury company, is set to distribute a one-off ether dividend and royalty payment of $0.40 per share of ETH. This initiative aims to reward shareholders while addressing concerns about “predatory short selling.”
“These payments are meant to benefit long-term shareholders and will, hopefully, discourage stock lending to those short sellers,” someone mentioned on Monday.
On the day of the announcement, BTCS shares climbed by 10.4%. This dividend marks the first time a company has publicly issued such a payment in ETH.
“Vivid” ETH Payments Scheduled for September
An ETH dividend of $0.05 per share, referred to as “Vivid,” is set to be paid out on September 26. Additionally, a “loyalty payment” of $0.35 per share will go to those holding shares until January 26, 2026. All shareholders will receive these royalty payments, excluding company officers, supervisors, and employees.
The former Bitcoin mining firm aspires to carve out a niche in a competitive landscape of 69 ETH treasury companies, all vying to amass substantial ETH holdings.
Ether treasury firms have significantly influenced Ether’s price increases over the past four months.
BTCS Joins the ETH Treasury Competition
Currently, Bitmine Immersion Tech and Sharplink Gaming lead the competition with holdings of 1.5 million ETH and 728,800 ETH, respectively. Meanwhile, BTC sits in 11th place with 70,000 ETH, valued at over $303 million, according to recent data.
BTCS has been actively utilizing decentralized finance methods, like borrowing from Aave. While they have been staking since at least 2022, their efforts to gather more ETH have intensified in recent months.
Related: EtherETFS Break Records Amidst $3.75 Billion Inflows
Similar to their rivals, BTCS finances its purchases through market equity offerings and convertible debt issuance.
BTCS Shares Partially Recover
Following the announcement, BTCS shares rose by 10.4% to $4.87, regaining some of the ground lost since peaking at $6.57 on July 18. Current market capitalization for the company, listed on NASDAQ, stands at $233 million.
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