Key Highlights:
- BTCS pays a historic $0.05 per share Ethereum ‘Bividend’ to shareholders.
- Extra $0.35 loyalty payout offered for transferring and holding shares in book entry.
- CEO says holders gain more control and protection from short selling.
BTCS Launches World’s First Ethereum ‘Bividend’ for Shareholders
American company BTCS announced a one-time dividend payment in Ethereum (ETH) — called a “Bividend” — amounting to $0.05 per share. Some shareholders are also eligible for additional compensation.
This additional benefit is a one-time payment of $0.35 per share for transferring securities into a book-entry system, which uses a digital ledger instead of paper certificates.
To qualify for the extra payment, shareholders must hold their shares in the book-entry system for at least 120 days. However, company employees and management are not eligible for this additional reward.
BTCS highlights that it is the first public company in the world to offer dividend payments in Ethereum.
“We are paying the Bividend and loyalty payment to thank our long-term shareholders and empower them to take control of and protect their investment,” said Charles Allen, CEO of BTCS. “By moving to book entry, our shareholders receive a tangible benefit and prevent their shares from being lent to short sellers, protecting against market manipulation and forcing institutional short sellers to either cover or call in existing short positions.”
Company History and Future Plans
It is noteworthy that BTCS paid out dividends in Bitcoin in 2022, and the address bividend.com was purchased as early as February 2015.
We previously reported that BTCS plans to rais up to $2 billion to bolster its reserves. Companies with similar business models often use the issuance of stocks and bonds for this purpose.
Anticipation of this deal likely explains the recent short positions against the company, as noted by Allen.
