TL;DR
- ETHZilla sold approximately $40 million in ETH to fund a share buyback program, acquiring 600,000 shares for $12 million.
- CEO McAndrew Rudisill stated that the buyback aims to reduce the number of shares outstanding, increase the NAV per share, and adjust the discount relative to net asset value.
- Shares rose 14.5% in regular trading and 9–12% in after-hours sessions.
ETHZilla, a crypto treasury firm focused on Ethereum, sold roughly $40 million in ETH to fund a share repurchase program.
The company used part of the cash proceeds to buy back its own shares and has so far acquired around 600,000 shares for a total of approximately $12 million, as part of a board-approved $250 million buyback plan.
ETHZilla’s president and CEO, McAndrew Rudisill, explained that the goal of the buyback is to reduce the number of shares outstanding, increase the NAV per share, and normalize the discount relative to the NAV. The firm plans to continue selling ETH and repurchasing shares until this discount is corrected, taking advantage of opportunities while the stock trades below its net asset value.
ETHZilla Gains Ground in the Market
Following the announcement, ETHZilla shares rose 14.5% during regular trading and continued climbing 9–12% in after-hours sessions, surpassing $22.50. Despite the gains, shares remain well below the all-time high of $107, reached when the company launched its Ethereum-based treasury plan.
The ETH sale was executed around the $3,900 level. The cryptocurrency later rose to $4,280 over the weekend before retracing to roughly $4,150. ETHZilla currently holds about $400 million in Ethereum, making it one of the largest corporate treasuries in the ecosystem.
Heavy Pressure on Crypto Treasury Firms
ETHZilla’s move highlights the ongoing pressure on digital-asset treasuries. Several firms with crypto holdings trade below the net asset value of their assets, limiting their ability to raise funds and expand crypto holdings. The company has experienced a decline of nearly 90% from its August peak, with a discount of roughly 30% relative to its NAV.
Funds such as Peter Thiel’s Founders Fund have backed ETHZilla, acquiring a 7.5% stake in the company. Other firms, including SharpLink Gaming, follow similar strategies, demonstrating that combining share buybacks with crypto liquidity can reduce volatility and align market prices with the real value of holdings
