Well, here’s a move that’s got people talking. ETHZilla, you know, that Ethereum-focused treasury firm with backing from Peter Thiel, is making a pretty significant play. They’ve just announced a massive stock buyback program. And this comes right on the heels of Ethereum itself surging to a brand new record high.
The company’s board has apparently given the green light to repurchase up to $250 million worth of its own common stock. For anyone not totally up on financial jargon, a buyback is basically when a company decides to buy its own shares back from the marketplace. It reduces the number of shares floating around out there, which can—theoretically, at least—boost the value of the ones that remain. It’s often seen as a vote of confidence from the company itself.
A Statement of Confidence
McAndrew Rudisill, who serves as the executive chairman over at ETHZilla, didn’t mince words. He stated that this “aggressive” repurchase plan, especially at the current stock price, is a direct move to show they’re serious about creating value for their shareholders. It’s a strong signal, I suppose. They’re putting their money where their mouth is.
But that’s not the only interesting detail they shared. The firm also dropped its latest treasury numbers. They’re now holding a staggering 102,237 ETH. They say their average buy-in price was just under $3,950 per coin. With Ethereum’s price still hovering well above that, their holdings are worth a cool $465 million or so. On top of that, they’re sitting on about $215 million in cash equivalents. So they’re not exactly strapped.
The Long-Term ETH Strategy
So what’s the plan for all that Ethereum? According to the announcement, they’re in it for the long haul. They don’t seem to be day-trading this stuff. The recently purchased coins are expected to be held and, importantly, staked. But they’re not just using any old protocol.
They’re planning to stake through Electric Capital’s proprietary system, something called the Electric Asset Protocol. The idea there is that it’s supposed to generate a better yield than you’d get from your run-of-the-mill staking methods. Whether it actually will is another question, but that’s the claim.
It’s a reminder of how this company even came to be. Earlier this month, a firm called 180 Life Sciences Corp. completely rebranded itself as ETHZilla. It wasn’t just a name change. They went all in, acquiring a huge pile of Ethereum after raising over $425 million through a PIPE funding round and a convertible note offering. It was a complete pivot.
This all happens against the backdrop of a wild market. Ethereum just touched a dizzying all-time high near $4,900 over the weekend. It’s pulled back a bit since then, like most crypto does after a big run-up, trading around $4,547 as of now. But the overall sentiment, for ETHZilla at least, seems overwhelmingly bullish. They’re betting big on themselves and on Ethereum’s future, all at once.