ETHZilla Corporation (Nasdaq: ETHZ) has liquidated $40 million worth of
Ethereum
(ETH) to support a share repurchase initiative, with the goal of reducing the disparity between its share price and net asset value (NAV). Since October 24, the company has bought back close to 600,000 shares for a total of $12 million as part of its $250 million buyback authorization, marking a notable pivot to capitalize on its robust balance sheet, as detailed in a
Marketscreener report
. CEO McAndrew Rudisill stated the action is "immediately accretive," given that the shares are trading well below NAV, and the company plans to keep selling ETH to fund repurchases until the price gap closes, according to a
Yahoo Finance report
.
ETHZilla
still holds $400 million in ETH after the sale, maintaining one of the largest Ethereum reserves among publicly traded companies, as reported by a
CoinMarketCap article
.
The company’s stock jumped 14.5%, closing above $22.50 on October 27, continuing a rally that started late last week, according to a
The Block report
. This development comes after mounting pressure from shareholders, including activist investor Dimitri Semenikhin, who called on management to use Ethereum holdings for buybacks to unlock shareholder value, as mentioned in a
crypto.news report
. Semenikhin’s public letter came before the official announcement, pointing out the company’s missed opportunities to capitalize on its NAV premium. The report also observed that this approach mirrors a wider trend in the sector, with competitors like SharpLink Gaming (SBET) also launching large-scale buyback programs.
The company’s strategy has ignited discussion in the crypto sector. Supporters claim that buying back undervalued shares increases NAV per share and curbs short selling (as previously covered by Yahoo Finance), while critics caution that ongoing ETH sales could trigger a "death spiral" if they drive down Ethereum’s price, as highlighted in a
TradingView piece
. The ETH sale took place when prices hovered around $3,900, later climbing to $4,250—a timing aspect that has attracted attention in subsequent reports. ETHZilla’s board reaffirmed its focus on balancing treasury stability with shareholder interests, noting its zero net debt and a diversified approach that includes tokenization and DeFi protocol adoption, as previously mentioned.
ETHZilla’s actions underscore the increasing demand on crypto-centric companies to stabilize valuations amid market swings. With shares trading at a 30% discount to NAV as of October 2025 (as reported by Yahoo Finance), the company’s assertive buyback strategy is designed to bring market value in line with its asset base. The plan also seeks to address worries about share dilution and liquidity, as a smaller share count could boost NAV per share and strengthen investor trust, according to an
FXStreet report
.
