BTCS pays a "loyalty fee" to combat the short selling faction

Ethereum treasury company ($ETH ) BTCS has announced a one-time "loyalty fee" payment of $0.35 per share for investors who transfer their shares to the company's transfer agent. This move aims to make the shares less liquid and counter the short-selling faction.

Reasons and Strategy

Shares of #BTCS are trading at a significant discount compared to the cryptocurrency asset value held by the company. Although the company holds 70,000 ETH worth $303 million, its market capitalization is only $215 million. CEO Charles Allen stated that this discount is due to hedge funds betting on a decline in BTCS's share price.

To address this issue, BTCS is calling on investors to transfer shares to the company's transfer agent's "register." This method, similar to the strategy of community #gamestop , will limit the ability of brokerage firms to lend out shares, increasing the costs of short selling.

This move has helped BTCS shares rise nearly 9% during Monday's trading session. However, it also has some downsides. The transfer of shares may take several days, preventing investors from easily selling them.

In addition to the "loyalty fee," BTCS also announced a special dividend of $0.05 per share, referred to as a "Bividend," which will be paid in Ethereum in September. This strategy demonstrates BTCS's creativity in protecting share value and reinforcing investor confidence. #anh_ba_cong