Ethereum treasury company ETHZilla has sold about $40 million worth of ETH from its reserves to fund a major share buyback program, aiming to reduce the gap between its stock price and net asset value (NAV).
According to an October 27 press release, the Nasdaq-listed company repurchased roughly 600,000 shares late last week for around $12 million following the ETH sale. ETHZilla’s stock jumped over 14% on Monday, closing at $20.65 and rising another 14% after hours to $23.55, according to data from Google Finance.
Boosting Share Value Through Buybacks
ETHZilla’s strategy is designed to strengthen investor confidence by increasing the value of each remaining share. NAV, or Net Asset Value, represents the per-share worth of a company’s assets after liabilities are deducted a key metric for crypto treasury firms like ETHZilla that hold large amounts of digital assets.
By repurchasing its own shares, ETHZilla hopes to narrow the discount between its share price and its NAV per share, effectively raising the relative ownership stake of existing shareholders.
“By opportunistically repurchasing shares while our stock is trading below NAV, we plan to reduce the number of shares that are available for stock loan or borrow activity, while increasing the NAV per share of the Company,” said McAndrew Rudisill, ETHZilla’s Chairman and CEO.
The firm added that remaining funds from the ETH sale will also be used for additional share repurchases, continuing until “the discount to NAV is normalized.” Despite the sale, ETHZilla still holds around $400 million worth of Ethereum in its treasury.
Shareholders Push for More Aggressive Buybacks
The buyback move follows growing pressure from key shareholders, including activist investor Dimitri Semenikhin, who has been urging ETHZilla to unlock value by using its Ethereum holdings to repurchase shares.
Semenikhin, who recently disclosed a 2.2% stake in the company, published an open letter calling for management to take decisive action. His letter, posted via Capybara Stocks on X, emphasized that buybacks would help close the valuation gap and immediately benefit investors.
Market Optimism and Strategic Investments
Investor sentiment around ETHZilla has improved significantly since October 23, following both the buyback news and the company’s $15 million investment for a 15% stake in Satschel, Inc., the parent company of Liquidity.io, a regulated broker-dealer and digital trading system.
This strategic move signals ETHZilla’s broader ambition to diversify its exposure in the digital finance ecosystem.
ETHZilla’s $250 Million Buyback Program
The recent purchases are part of a larger $250 million share repurchase plan approved by ETHZilla’s board in August. The company has already bought back more than 6 million shares in September, marking an aggressive push to enhance shareholder value.
The program is expected to continue through June 30, 2026, with ETHZilla repurchasing shares both on the open market and through privately negotiated deals at prevailing prices.
Bottom Line
ETHZilla’s decision to convert part of its Ethereum holdings into capital for share buybacks highlights a growing trend among crypto-treasury firms to use digital assets for shareholder value creation.
With a robust ETH reserve, a $250 million buyback authorization, and renewed investor enthusiasm, ETHZilla is positioning itself as a leader in bridging blockchain treasury management and traditional market strategy turning crypto wealth into tangible shareholder returns.
