Ether dividend is now at the forefront of blockchain investment strategy as BTCS Inc., a Nasdaq-listed crypto company, unveils its pioneering plan to pay shareholders in ETH. This announcement marks the first-ever instance of an Ethereum-based dividend program, aimed at encouraging long-term investment and deterring market short selling.

BTCS Launches Innovation With Ether-Based Payout

BTCS announced it will issue a unique dividend known as the “Bividend,” offering $0.05 per share. Shareholders can elect to receive this payout in either ether or fiat currency. To qualify, investors must opt in by September 26, which stands as the record date for the distribution.

In addition to the Bividend, BTCS introduced a loyalty incentive paying $0.35 per share in ETH. However, this payment is available exclusively to those who transfer their shares into book entry with the company’s designated transfer agent and retain them there through January 26, 2026.

Incentivizing Holding Over Short Selling

The firm’s strategy is designed to reward investor loyalty while simultaneously making it more difficult for shares to be borrowed and shorted. Short selling typically involves selling borrowed shares in hopes of buying them back at a lower price, profiting from the drop. BTCS sees this approach as a defense against stock manipulation.

“By rewarding shareholders who hold at our transfer agent, we block predatory short sellers, cut manipulation, and build a stronger base,” remarked CEO Charles Allen on X. He emphasized that short sellers speculate on share dilution, and their new loyalty structure directly targets that behavior.

The company highlighted a significant valuation discrepancy, noting their balance sheet reflects a combined cash and digital asset value of around $6.65 per share, yet the market is undervaluing BTCS at under $5.

Market Reaction and Company Strategy

Following the announcement, BTCS shares jumped 7% early in the trading session, reaching $4.71. By contrast, other digital asset companies, such as BitMine (BMNR) and SharpLink (SBET), experienced declines.

BTCS has long maintained a focus on Ethereum. It repositioned itself in 2021 to center its business around ETH, anticipating the growing relevance of Ethereum-based assets far ahead of many newer entrants. As of August 12, BTCS held more than 70,000 ETH, a position currently valued at approximately $300 million according to their firm’s website.

Chart outlining BTCS’s Bividend and loyalty ETH payout incentives targeted at discouraging short selling.

Related: Cardano Bull Setup Points to December Rally

In a related development, BitMine Immersion’s Ether Holdings topped $6.6 billion, but their stock reacted unfavorably amid a broader ETH market dip, emphasizing the significance of strategic innovation such as BTCS’s dividend model.