BTCS marks the first case of a public company that will distribute Ethereum dividends to shareholders later this year, paying ETH corporate dividends.
The company said investors will receive payments worth $0.05 per share at Ethereum in September.
The second component, known as the royalty dividend, will distribute an additional $0.35 per share of ETH on January 26, 2026, while still being shareholders until that day. Payments exclude company officers, directors and employees.
The company’s shares rose more than 10% after the announcement, reflecting interest in the mechanisms of the new program. BTCS holds around 70,000 ETH, $303 million, making it Ethereum’s largest corporate holder.
The company describes its strategy as Ethereum First, with operations spanning validator infrastructure, staking services and blockchain software development.
The royalty dividend introduces a second element designed to reward short-term holders, reducing the number of shares available for loans in short-term sales transactions. The company said the design is intended to strengthen its investor base.
BTCS characterized the loyalty structure as “a way to reward long-term shareholders while reducing the ability of stocks to lend to predatory short sellers.”
This is not the company’s first experiment on crypto-based dividends. In early 2022, BTCS launched what is called “bididend.” This is a program that allows shareholders to receive $0.05 per share in Bitcoin rather than cash.
Its distribution required an opt-in process and was recorded in a filing with the Securities and Exchange Commission. Shareholders were required to hold shares until March 17, 2022, qualify for a Bitcoin dividend and pay cash as a default replacement.
BTCS is built on its previous model by expanding both scale and mechanics. The 2022 dividend was limited to a single payment, with only Bitcoin offered, but the 2025 program includes Ethereum, split schedules and loyalty incentives.
The timing coincides with the continued accumulation of BTCS ETH and the expansion of its infrastructure footprint. As detailed in the company’s second quarter 2025 revenue release, revenues increase along with Ethereum-related businesses, further linking the company’s corporate performance to the ETH market.
From a regulatory perspective, crypto dividends are treated as property distributions, creating taxable events for recipients. This has become relevant during the 2022 Bitcoin dividend. This required BTC to navigate reporting and settlement procedures with the transfer agent and clearing system.
The Ethereum dividend follows the same legal framework. In other words, shareholders are taxed on the fair market value of the ETH received at the time of distribution.
The broader meaning of this move lies in the corporate adoption of digital assets for shareholder profits. Although small businesses with market capitalization, BTCS uses dividends twice to demonstrate the viability of crypto-based corporate actions.
The expanded Ethereum program introduces a more complex loyalty structure, further linking the company’s capital strategy to blockchain assets, distinguishing between companies and their approaches that restrict cryptographic involvement to financial management.
The distribution occurs on September 26th, with royalty dividends scheduled for January 26th, 2026.
