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ETH “Dividends” and Loyalty Rewards
Market Reaction and Valuation Gap
BTCS has shifted its business focus towards Ethereum since 2021 and currently holds over 70,000 ETH (approximately $300 million), ranking 11th globally in ETH holdings. In recent years, the company has actively accumulated ETH through methods such as borrowing via Aave, ETH staking, and raising funds through new stock and convertible bond issuances.
According to an announcement, BTCS will issue a one-time dividend of $0.05 per share on September 26 to eligible shareholders who choose to participate, with shareholders having the option to receive payment in ETH or cash.
Additionally, the company has established a “Loyalty Reward”: shareholders who transfer their stocks to the company’s transfer agent and hold them until January 26, 2026, will receive an additional $0.35 worth of ETH per share. This initiative aims to reward long-term investment and reduce the likelihood of stocks being lent to short sellers. The loyalty reward will not apply to the company’s internal executives, directors, and employees.
BTCS CEO Charles Allen stated on X:
“By rewarding long-term shareholders, we can prevent predatory shorting, reduce manipulation, and build a more solid shareholder base. While short sellers bet that we will dilute shares, the loyalty program is a direct countermeasure.”
Following the announcement, BTCS’s stock price rose by 10.4% on Monday to $4.87, with a market capitalization of $233 million, recovering some of the decline from the high of $6.57 in July.
Allen also pointed out that the company’s balance sheet indicates a value of approximately $6.65 per share (including cash and digital assets), creating a gap with the market price of less than $5.