BTCS strikes with a bang! First introducing ETH dividends and loyalty bonuses, directly hitting the pain points of short sellers.

The US-listed blockchain company BTCS Inc. (BTCS) recently announced that it will pay a one-time dividend and "loyalty payments" to its shareholders in Ether (ETH), becoming one of the first US companies to use crypto assets as dividend payments. This move is not only a return to long-term shareholders but is also interpreted by the market as a strategic counterattack against short sellers.

Details of ETH Dividends and Loyalty Bonuses

According to the announcement, BTCS will provide to shareholders:

1. A "Bividend" dividend of $0.05 per share (paid in ETH)

2. A "Loyalty Payment" of $0.35 per share (paid in ETH, conditions apply)

To receive loyalty bonuses, shareholders must keep their stocks deposited with the company's transfer agent for at least 120 days. BTCS states that this will reduce the likelihood of stocks being borrowed for short selling and protect shareholder interests.

Motivation: Preventing Short Selling and Market Manipulation

BTCS CEO Charles Allen stated that this move is intended to "thank long-term shareholders and empower them with the right to protect their investments." He pointed out that distributing ETH dividends and loyalty bonuses through bookkeeping not only brings actual benefits to shareholders but also prevents stocks from being lent to short sellers, forcing institutional shorts to cover their positions.

Allen emphasized: "My goal is to enhance market value through stock price increases, rather than relying on dilutive financing."

Historical Background: The Precedent of BTCS and Crypto Assets Dividends

BTCS was founded in 2014 and is one of the earliest publicly listed blockchain companies in the United States.

2022: BTCS paid dividends for the first time in Bitcoin (BTC) or cash, and the stock price surged more than 40%.

2025: This ETH dividend and loyalty bonus program has once again attracted market attention.

The company is currently engaged in multiple businesses, including Builder+ Block building services, NodeOps validator solutions, and ChainQ analytics platform.

Market Environment and Competitor Dynamics

In recent years, several Ethereum asset management companies have rapidly expanded through equity and debt financing, but market enthusiasm is cooling down. For example, the second largest ETH asset management company SharpLink (SBET) saw its stock price drop by 10% after announcing its quarterly results, far below its annual high.

According to Yahoo Finance data, the short position of BTCS accounts for 7.3% of the circulating shares, which is below the "severely shorted" threshold of 20%, but still indicates some bearish sentiment in the market.

##Financial Status and Challenges

BTCS reported a net loss of 13.39 million dollars over the past six months, mainly due to:

1. Investment in Builder+ services

2.574 million dollars in depreciation loss

3. Loss of 4.16 million dollars caused by the sale of non-Ethereum assets

Despite this, the company's stock price has risen nearly 70% since the beginning of the year to $4.40, reflecting the market's continued interest in "crypto asset management companies."

Conclusion

The initiative of BTCS to pay dividends and loyalty bonuses in ETH is not only a return to shareholders but also a strategic counterattack against short sellers. This move may lead more crypto companies to explore the "crypto dividend" model, but whether it can promote long-term stock price increases while defending against short sellers remains to be verified by the market. For more real-time quotes and in-depth analysis, please follow the official Gate platform.