US-based BTCS has announced a pioneering dividend payment in Ethereum (ETH), asserting itself as the first publicly traded company to distribute a "Bividend" directly in cryptocurrency. This innovative approach reflects the company's evolving strategy for shareholder engagement and market resilience within the digital asset space.
- The one-time distribution amounts to $0.40 per share.
- A base "Bividend" of $0.05 will be paid directly in ETH.
- An additional $0.35 is offered to shareholders who transition to a book-entry system.
- Eligibility for the bonus requires shares to be held in book-entry for at least 120 days.
- This initiative builds on BTCS's 2022 Bitcoin dividend, establishing a pattern of crypto-based shareholder rewards.
Dividend Structure and Eligibility
The total one-time distribution amounts to $0.40 per share, comprising a base $0.05 "Bividend" paid in ETH and an additional $0.35 for shareholders who transition their securities to a book-entry system. This system, a digital ledger, replaces traditional physical certificates. Eligibility for this bonus requires shareholders to hold their shares in the book-entry system for at least 120 days. This initiative builds on BTCS's 2022 Bitcoin dividend, establishing a pattern of crypto-based shareholder rewards that distinguishes its corporate finance strategy.
Strategic Rationale Behind the Bividend
CEO Charles Allen stated the move aims to reward loyal shareholders and enhance their investment control and protection. He highlighted that book-entry accounting prevents shares from being lent to short sellers, thereby mitigating potential market manipulation. Allen emphasized the company's focus on maximizing per-share returns and safeguarding stakeholder interests against speculative short positions, which he noted are actively betting against BTCS.
Broader Financial Strategy and Market Impact
This proactive dividend strategy aligns with BTCS's broader financial objectives, including reported plans to raise up to $2 billion for capital reserves—a financing approach typical of companies with similar business models, often through equity or debt. Allen indicated that anticipation of such capital raises might contribute to existing short interest against the company. The announcement spurred a 3% increase in BTCS shares at the August 18 market opening, reflecting immediate positive investor reaction.