Chiara Bianchi
ETHZilla (ETHZ), the Ethereum-based digital asset treasury, has sold roughly $40 million worth of ETH to finance an ongoing share repurchase program, signaling a strong push to narrow its trading discount to net asset value (NAV).
Following the announcement, ETHZ shares surged 14.5% and climbed another 9% at press time, trading above $22.50, according to Google Finance. Despite the rebound, the stock remains far below its previous high of around $107, reached when the firm initially disclosed plans to raise capital for its Ethereum treasury.
In August, ETHZillaโs board of directors approved a $250 million share buyback plan to enhance shareholder value. Since selling ETH on October 24, the company has already repurchased about 600,000 shares of its common stock for roughly $12 million.
According to a press release issued Monday, ETHZilla plans to continue selling portions of its ETH holdings to fund additional buybacks until the discount to NAV normalizes. The firm emphasized that it remains committed to maximizing shareholder returns through active treasury management.
Firm Maintains $400 Million in Ethereum Holdings
Chairman McAndrew Rudisill stated that ETHZilla will keep repurchasing shares โas long as the company trades at a significant discount to NAV,โ aiming to reduce outstanding stock and increase overall net asset value per share.
Despite recent ETH sales, ETHZilla still holds about $400 million in Ethereum on its balance sheet, maintaining a sizable crypto treasury. Notably, Peter Thielโs Founders Fund acquired a 7.5% equity stake in ETHZilla back in August, underscoring growing institutional interest in crypto treasuries.
Ethereum Treasury Competition Heats Up
ETHZilla is not alone in pursuing stock buybacks tied to Ethereum holdings. SharpLink Gaming (SBET) โ the second-largest ETH treasury โ has also approved a $1.5 billion repurchase program, designed to buy back shares whenever they trade at or below the companyโs NAV.
The moves by both firms highlight a growing trend among crypto treasuries to leverage on-chain assets for shareholder value creation, aligning tokenized reserves with traditional corporate finance strategies.
