Ethereum Updates: ETHZilla Sells ETH to Prevent Share Premium Decline

ETHZilla Corp (ETHZ) has taken a significant step to increase shareholder returns by selling $40 million in ether to support an ambitious stock buyback plan. Announced on October 27, this move represents a major change in direction for the decentralized finance (DeFi) firm, which is now focused on cutting the number of shares in circulation and boosting the net asset value (NAV) per share, as highlighted in a

. The company has already bought back 600,000 shares at a cost of roughly $12 million, demonstrating its commitment to the larger $40 million repurchase effort.

This sale is part of ETHZilla’s broader financial management strategy, with the company maintaining $400 million in ether reserves for future projects. By targeting shares that are available for lending or borrowing, the buyback aims to limit dilution and bring stability to the often volatile share price. This strategy is in line with CEO McAndrew Rudisill’s renewed emphasis on investor engagement, which has included a 1-for-10 stock split in October and the hiring of John D. Kristoff as Senior Vice President of Corporate Communications and Investor Relations, as referenced in a

. Kristoff’s appointment highlights the importance of transparency, which is especially crucial for a company that has yet to generate revenue or turn a profit, despite its DeFi goals.

ETHZilla’s recent actions come at a time when crypto treasury stocks are under increased examination. The company’s strategy of holding large ether reserves follows a pattern seen with firms like MicroStrategy, which has received both praise and skepticism for its cryptocurrency investments, according to a

. With more than 180 publicly traded companies now owning crypto assets, the market landscape is evolving. Many of these companies are now valued below the worth of their token holdings, creating a risky cycle where share premiums disappear and investors turn to tokens instead of stocks. ETHZilla’s $40 million ether sale may help slow this negative trend by strengthening its financial position.

The company’s third-quarter financial results, set to be released on November 14, will provide more details on how effective these strategies have been, according to a

. CFO John Saunders will lead a webcast to share updates on operations, including developments in DeFi protocol integration and blockchain analytics. At the same time, the recent stock split—intended to make shares more accessible—along with Kristoff’s communications leadership, suggests an effort to attract a wider range of investors. Analysts remain split, with price targets for the stock ranging from $0.50 to $5 per share, highlighting significant uncertainty about the company’s future profitability.

As the crypto sector consolidates, ETHZilla’s substantial ether sale highlights the inherently risky and potentially rewarding nature of crypto treasury management. While this move could help steady the company’s share price in the near term, its long-term prospects will depend on achieving real revenue growth and operational success—challenges that continue to confront most DeFi businesses.