ETHZilla, the Ethereum treasury giant trading under the ticker ETHZ, has sold $40 million worth of ETH to finance a massive share buyback program valued at $250 million. The operation, initiated last Friday, is part of an aggressive strategy to bridge the gap between the stock price and the company’s tangible assets value (mNAV).
The chairman, McAndrew Rudisill, is clear on the strategy: as long as ETHZ’s stock “trades with a significant gap from the net asset value (NAV),” the company will continue to buy back its own shares. In simple terms: ETHZilla believes its stock price is vastly undervalued compared to its Ethereum reserves.
The immediate result: the stock surged +14.5% at closing, and another +9% in after-hours trading, surpassing $22.50. A strong recovery, albeit still far from the peak of $107 when the company announced the creation of its Ethereum treasury.
A Massive and Well Underway Plan
The buyback plan, approved as early as August by the board of directors (then still under the name 180 Life Sciences Corp.), aims to mobilize up to $250 million. Since the sale of its ETH on October 24, the company has already repurchased about 600,000 common shares, totaling $12 million.
ETHZilla specifies that the remaining funds from the Ethereum sale will be used to continue these buybacks, even if it means selling more digital assets if necessary. The goal is clear: reduce the float (the number of shares in circulation) and enhance the net asset value per share, even if it means slowing down the ETH acquisition strategy.
ETHZilla Sells its ETH Despite Still Strong Treasury
Despite the recent sale, ETHZilla still holds nearly $400 million worth of Ethereum on its balance sheet. The company remains one of the largest “ETH treasurers” worldwide. It has also attracted prominent investors: in August, Peter Thiel’s Founders Fund acquired 7.5% of ETHZilla’s shares, implicitly validating confidence in its digital asset accumulation and management strategy.
A Trend Extending Among Crypto Treasuries
ETHZilla is not alone. The second-largest Ethereum holder listed on the stock market, SharpLink Gaming (SBET), has also launched a buyback program of up to $1.5 billion, intended to support its stock price when it falls below the real value of its crypto assets.
In a market still dominated by volatility and speculation, these operations mark a new phase of financial maturity for crypto companies: those able to actively manage their treasury in digital assets while rewarding their shareholders. A clear way to show that decentralized finance can also speak Wall Street’s language.
