TL;DR
- ETHZilla sold around 11,900 ETH for about $40 million to fund a $250 million share buyback program.
- The company allocated $12 million from that sale to repurchase roughly 600,000 shares at an average price of $20.
- Shares rose 14.5% after the announcement, though analysts warned that selling ETH during a weak market phase could limit future gains if the token rebounds.
ETHZilla converted part of its Ethereum treasury into cash to finance a $250 million share buyback program.
The Nasdaq-listed company, which manages Ethereum reserves, sold around 11,900 ETH for approximately $40 million at an average price of $3,338 per unit, according to data confirmed by the firm.
Stock Adjustment and Recovery
This allowed ETHZilla to cover part of the buybacks announced earlier this month. The company reported allocating about $12 million to repurchase roughly 600,000 shares at an average price of $20 as part of its broader buyback plan. The program aims to narrow the gap between the stock’s market price and its net asset value (NAV), aligning the share price with the company’s underlying Ethereum holdings.
Following the announcement, ETHZilla shares jumped 14.5%, driven by a sharp increase in trading volume. Investors viewed the ETH sale as a sign of active capital management and commitment to shareholder returns. However, some analysts cautioned that liquidating reserves during a period of weakness in Ethereum’s price could limit future upside if ETH recovers in the coming months.
Did ETHZilla Sell ETH at the Wrong Time?
Using on-chain reserves to repurchase shares is a strategy with mixed outcomes. On one hand, it reduces the number of shares in circulation and improves per-share metrics. On the other, it decreases direct ETH holdings, increasing exposure to future price swings of the token. The sustainability of the program will depend on Ethereum’s market performance and ETHZilla’s ability to balance liquidity and value across its balance sheet.
The buyback plan places ETHZilla among the few crypto companies implementing capital management policies typical of traditional public markets. The firm aims to maintain investor confidence and adapt its internal structure to a hybrid model that blends decentralized finance with corporate governance standards. According to available filings, ETHZilla will maintain transparency of its on-chain balances and report its buybacks in upcoming quarterly disclosures
