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Ethereum News Update: ETHZilla Transforms ETH into Resources for Buybacks, Connecting DeFi with Conventional Finance

Ethereum News Update: ETHZilla Transforms ETH into Resources for Buybacks, Connecting DeFi with Conventional Finance

Bitget-RWA2025/10/27 20:58
By:Bitget-RWA

- ETHZilla sold $40M in ETH to fund a stock buyback program, aiming to reduce its NAV discount and boost shareholder value. - The company repurchased 600,000 shares for $12M and plans to use remaining ETH sale proceeds for further buybacks. - ETHZilla also invested $15M in Satschel to expand DeFi integration and real-world asset tokenization, addressing market access limitations. - Despite a 7.3% stock surge post-announcement, its 53.7x price-to-book ratio remains elevated, raising questions about long-ter

ETHZilla Corporation (Nasdaq: ETHZ) has completed a $40 million transaction, selling off a portion of its

(ETH) reserves to support a stock buyback initiative. This effort is intended to take advantage of the company’s shares being valued well below their net asset value (NAV), as highlighted in a . Announced on October 24, 2025, this action is part of a larger plan to reinforce ETHZilla’s financial position and deliver greater value to shareholders by strategically utilizing its digital assets, according to a .

So far, the company has bought back around 600,000 shares of its common stock for $12 million as part of its $250 million repurchase plan, with intentions to use the remaining funds from the ETH sale for further buybacks, MarketScreener noted. McAndrew Rudisill, chairman and CEO of ETHZilla, stated that these repurchases are "immediately accretive," aiming to decrease the number of shares available for lending or borrowing and to increase NAV per share. ETHZilla still holds approximately $400 million in ETH, which it plans to use for future strategic projects.

Ethereum News Update: ETHZilla Transforms ETH into Resources for Buybacks, Connecting DeFi with Conventional Finance image 0

By converting a portion of its cryptocurrency assets into cash, ETHZilla is following a broader industry trend where companies with substantial digital reserves seek to optimize their capital structure. The company’s commitment to bridging conventional finance with decentralized finance (DeFi) has allowed it to benefit from Ethereum’s growing ecosystem, including real-world asset tokenization and Layer 2 solutions, as reported by MarketScreener. Rudisill mentioned that the buyback program supports ETHZilla’s long-term goal of "normalizing the discount to NAV" by leveraging its robust balance sheet.

The share repurchase initiative is part of a wider strategic transformation for

, which recently revealed a $15 million investment in Satschel, Inc., the parent of Liquidity.io, to obtain exclusive rights for listing Ethereum Layer 2 tokens on a regulated exchange, according to a . This collaboration is anticipated to speed up ETHZilla’s plans for tokenizing real-world assets, addressing earlier concerns about restricted market access and opening up new revenue opportunities.

Although the company has yet to achieve profitability and reports limited revenue, analysts believe these recent strategic decisions could alter its investment outlook. Following the Satschel partnership and token listing announcement, the stock rose by 7.3%, but its price-to-book ratio of 53.7x remains much higher than the sector average, according to a

. Investors are monitoring closely to see if these strategies will lead to lasting value or intensify worries about dilution and financial risk.

ETHZilla is set to announce its third-quarter 2025 results on November 14, 2025, with a webcast scheduled to review its business updates and financial outcomes in a

. The forthcoming earnings report will offer more details on the impact of its treasury management and share buyback efforts.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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