BTCS launches the world's first Ether dividend, creating history with $0.05 per share
NASDAQ-listed Ethereum strategy company BTCS announced on Monday (8/18) the launch of the world's first Ether dividend program, distributing Ether ($ETH) valued at $0.05 per share. This innovative dividend, called 'Bividend,' will be distributed in September. Eligible shareholders must choose to participate before the record date of September 26 and can opt to receive it in Ether or cash.
According to Strategic ETH Reserve data, BTCS currently holds over 70,000 Ether, valued at approximately $303 million. Following the announcement, BTCS's stock price (NASDAQ: BTCS) rose nearly 10.43% on Monday to $4.87, up 97.17% year-to-date.
Image Source: Strategic ETH Reserve BTCS currently holds over 70,000 Ether, valued at approximately $303 million
Loyalty payment mechanism fights against short-selling forces, an additional reward of $0.35 per share
In addition to regular dividends, BTCS has introduced a 'Loyalty Payment' mechanism that offers shareholders who transfer their shares to the company’s transfer agent and hold them until January 26, 2026, an additional payment of $0.35 per share in Ether. Combining the two plans, eligible shareholders can receive a total of $0.4 per share in Ether.
According to Fintel data, BTCS's short interest accounts for 7.4% of its outstanding shares, higher than similar Ethereum stock companies. CEO Charles Allen stated, 'Short sellers are betting that we will significantly dilute shares. Our loyalty program aims to fight back.' By transferring shares to the transfer agent, shareholders can reduce the number of shares available for lending, thereby increasing the cost of short selling.
Stock price discount trading triggers defensive measures, facing a correction in the trend of crypto stock companies
Despite BTCS holding $303 million worth of Ether, its market capitalization is only about $215 million, resulting in a price-to-book ratio discount of 0.75. Allen emphasized that the company's cash and digital asset holdings are valued at approximately $6.65 per share, while the stock price is below $5, indicating a clear market value mismatch.
BTCS is one of many Ethereum stock companies that have raised billions of dollars in a short time through equity and debt to accumulate Ether. However, this trend seems to be experiencing a correction, as the second largest Ethereum stock company, SharpLink, saw its stock price significantly drop after announcing its quarterly earnings. BTCS announced in 2022 that it would pay dividends in Bitcoin, making it the first U.S. company to pay dividends in cryptocurrency.
This content was generated by Crypto Agent compiling information from various sources, reviewed and edited by (Crypto City). It is still in a training phase and may contain logical biases or information inaccuracies. The content is for reference only and should not be considered investment advice.
The article 'The First U.S. Company to Pay Dividends in Cryptocurrency, BTCS Launches Loyalty Payments, Fighting Against Short Sellers' was first published on 'Crypto City'
