The American company BTCS has announced a one-time dividend payment to its shareholders in the cryptocurrency Ethereum (ETH). The main reward amounts to $0.05 per share, and individual shareholders will receive an additional bonus.
This is reported by Finway
Conditions for Receiving the Reward and Payment Features
In addition to the main dividend payment, BTCS has offered a one-time additional reward of $0.35 per share to those investors who convert their shares to a digital registry format (book entry), opting out of paper certificates. To qualify for this reward, shares must be held in the system for at least 120 days. Meanwhile, the management and employees of BTCS are not entitled to the additional payment.
BTCS emphasized that it is the first publicly traded company in the world to pay dividends in Ethereum. This move allows shareholders not only to gain profit but also to strengthen control over their investments.
“We decided to pay the Bividend and the loyalty reward to thank our loyal shareholders and give them the opportunity to control and protect their investments. By transitioning to book entry, our shareholders gain tangible benefits and prevent their shares from being lent to short sellers, protecting them from market manipulation,” said BTCS CEO Charles Allen.
Market Reaction and Additional Company Initiatives
Charles Allen stressed that this decision aims to increase profitability per share and protect shareholders’ interests from the pressure of short positions formed amid expectations of new share issuance. According to Allen, short sellers are betting on a further decline in the value of BTCS securities due to a potential additional share issuance.
It is worth noting that in 2022, BTCS had already paid dividends in Bitcoin. The domain for the project bividend.com was acquired by the company back in February 2015, indicating a long preparation for the implementation of new financial instruments for shareholders.
Furthermore, the company intends to raise up to $2 billion to replenish reserves in crypto assets, using share and bond issuance, similar to what other companies with a similar business model do. The anticipation of such a deal has also influenced the formation of short positions on BTCS shares.
Following the announcement of the dividend payment in Ethereum, the price of BTCS shares rose by 3% at the market opening on August 18.
BTCS stock price on the Nasdaq exchange. Source: TradingView.